2 Year Fixed Rate Savings Account

Additional special conditions

These 2 Year Fixed Rate Savings 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 2 Year Fixed Rate Savings Accounts as not being 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. The minimum investment in a 2 Year Fixed Rate Savings Account is £1. The maximum investment per customer is £5 million.
  2. Rates of interest on this account are fixed for the duration of the term as follows:
    • Annual interest rate: 4.10% gross p.a. (3.28% net) 4.10% AER
    • Monthly interest rate: 4.02% gross p.a. (3.22% net) 4.10% AER
  3. The term of the account will run from the date of the first deposit. Interest is calculated daily and is paid annually, or on the first day of each month for monthly accounts. 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.
  4. The account can be accessed or closed prior to maturity, subject to the following early access charges. There are no charges if an investor dies.
    Length of remaining term at the time of closure/access 1 year
    or less    		Up to
    2 years
    Early access charge on the amount withdrawn – equivalent in days gross interest90 days180 days
    If your remaining term includes part of a year your early access charge will be calculated based on the next whole year, eg 18 month term = the two-year early access charge.

    The amount of the early access charge will depend on the term of the account and will be equivalent to the number of days' gross interest as detailed in the table above. If there is insufficient earned interest, then the amount of the early access charge will be taken from your capital. If your interest has been paid into your nominated bank account, the loss of interest charge will be taken from your capital. The funds in the account, together with any interest earned and less the early access charge, will be paid to you.
  5. You can make further deposits into your account, providing the issue is still open.
  6. We reserve the right to suspend the issue of this account at any time.
  7. At least 14 days before the end of the term, we will write to you asking you to give us instructions about what you would like us to do with your account.
  8. If no instructions for re-investment are received by the end of the term, or we cannot reasonably comply with your instructions, we will re-invest your funds at maturity in an Easy Access Account of our choice.
  9. The account is available only to individuals' resident in the UK when opened in their own name, jointly or on behalf of another individual.

Issue date: 17 December 2009

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 further amount to pay. Net rates are illustrative only allowing for the deduction of income tax at 20%. If you are a higher rate taxpayer, you may have a further amount to pay. If we deduct more tax than you have to pay this can be reclaimed from HM Revenue and Customs.