AA Internet Extra Account (Issue 3)

Special Terms and Conditions

These AA Internet Extra (Issue 3) account terms and conditions are in addition to the General Investment Conditions, and where there are any contradictions these conditions shall prevail. In these terms, 'we', 'our' and 'us' mean Birmingham Midshires, a division of Bank of Scotland plc.

We treat our AA Internet Extra accounts as payment accounts. (We explain what a payment account is in condition 1 of the General Investment Conditions. You will see from conditions 18 and 19 of those conditions that we may treat payment and non-payment accounts differently if we make any changes to your conditions or interest rate).

  1. Interest is calculated daily and credited to the account annually on the anniversary of the first deposit.
  2. The AA Internet Extra (Issue 3) Account pays a variable interest rate. For the first 12 months the rate includes a 2.30% gross bonus. This bonus period will begin on the second day after we credit your account with your opening deposit. Interest will be credited to your account 12 months after the date we credit your account with your opening deposit (or the first bank working day following that, if it is not a banking day). Interest can be paid to the account, to another AA account or to another bank or building society account. Interest payments to non-AA accounts could take up to four bank working days to clear.
  3. On the 12-month anniversary of the first deposit, the account will revert to our Internet Extra (stage 2) which currently has a variable rate of 0.50% gross p.a./AER. We will not write to you specifically at this point.
    1. You agree that we may undertake a search with a credit reference agency for the purposes of verifying your identity. To do so the agency may check the details you supply against your particulars on any database (public or other) to which they have access. They may also use your particulars in future to assist other companies for verification purposes. A record of the search will be retained.
    2. If false or inaccurate information is provided and fraud is identified, details may be passed to fraud prevention agencies. Law enforcement agencies may access and use this information.
    3. We and other organisations may also access and use this information to prevent fraud and money laundering, for example, when:
      • checking details on applications for credit and credit related or other facilities
      • managing credit and credit related accounts or facilities
      • recovering debt
      • checking details on proposals and claims for all types of insurance
      • checking details of job applicants and employees
    Please contact us at Fraud Prevention Team, PO Box 81, Pendeford Business Park, Wobaston Road, Wolverhampton WV9 5HZ (the 'Corporate Centre') if you want to receive details of the relevant fraud prevention agencies. We and other organisations may access and use from other countries the information recorded by fraud prevention agencies.
  4. Linked account. You must set up one linked account to operate your account. A linked account must be a personal current account with direct debit facilities at a UK bank or building society. The linked account must be in your name. It may be in your name jointly with another person, but only if either of you can set up direct debits on the linked account. You will be able to transfer between the account and your linked account. The same conditions apply to any new linked account you may set up.
  5. Initial deposit. You must make the opening payment to your account with a cheque drawn from your linked account and made payable to yourself. Your name must be pre-printed on the cheque. Once we have made sure the details on the cheque correspond with your linked account we will pay it into the account. You cannot pay any more cheques into the account.
  6. Any subsequent payments must be made by direct debit from your linked account. No further cheque deposits/withdrawals will be allowed. Withdrawals from your account will be conducted by BACS transfer to your linked account and incur no handling charge.
  7. All transaction instructions must be made online. Amendments to personal details may be required in writing.
  8. You can obtain details of our customer complaints process by calling the AA Savings Team or visiting our website. Complaints which we cannot settle may be referred to the Financial Ombudsman Service.
  9. You can obtain details of our charges by calling the AA Savings Team or visiting our website.
  10. The AA Internet Extra (Issue 3) account cannot be held as a joint account. You can only open an AA Internet Extra (Issue 3) in your own name. You may only select a linked account where you have the authority to do so. You are not permitted to have a link to a bank account on which you are not named, nor to a joint bank account where two names are required to authorise a direct debit. You are not allowed to have more than one linked account. If you wish to change your linked account details, you may amend them by deleting the original and adding another while online.
  11. Rates of interest on the account are variable.
  12. We reserve the right to suspend the issue of this account at any time.
  13. Accounts cannot be operated by an attorney.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once a year. Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law. If you are a higher rate taxpayer you may have a further amount to pay. Net rates are illustrative only and allow for the deduction of tax at the savings rate of 20%.

Date issued: 11 March 2010