Account conditions for Saga 1 Year Fixed Rate ISA
If there is any overlap or conflict between the Account conditions and the General Conditions, the Account Conditions apply. In these terms “we”, “our” and “us” mean Birmingham Midshires, a division of Bank of Scotland plc, which is registered as an ISA manager at HM Revenue & Customs (HMRC).
The Account is a cash ISA and it has a fixed interest rate. We treat it as not being a payment account. The yearly ISA allowance is set by the Government and there are restrictions on withdrawal during the fixed interest rate period. We explain what a payment account is in condition 1 of the General Conditions. You will see from condition 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 ELIGIBILITY
1.1 To open an Account, you must be 50 or over (unless you are paying in an additional permitted subscription), and resident in the UK for tax purposes or a Crown employee serving overseas (or be married to or in a civil partnership with a Crown employee serving overseas). You must inform us if these conditions no longer apply to you.
1.2 The Account must be in your sole name and all funds deposited in it must belong to you.
1.3 You may not pay your yearly ISA allowance into more than one cash ISA in any one tax year.
1.4 The Government's ISA Regulations mean that if you do not pay any of your yearly ISA allowance into a cash ISA in any tax year (other than the year of application) you will need to complete a new application form if you want to make deposits in a later year subject to Condition 1.5 below.
1.5 The Account is a limited issue, and we can stop offering it at any time. Once you have opened your Account you will be able to add to it, subject to your yearly ISA allowance, until we stop offering this fixed rate ISA issue (see 3.1 below).
1.6 Unless you are a Crown employee serving overseas (or married to or in a civil partnership with such a person), you will not be able to add any funds to your Account if you move abroad. Your Account will remain open while you are abroad and you will be able to pay into it again (subject to 1.4 above and the paying in restrictions in 3.9 below) when you return to the UK.2 OPENING AND RUNNING YOUR ACCOUNT
2.1 Your Account will start from the date of your first deposit, which must be at least £1, and be accompanied by a valid application form. Applications cannot be backdated.
2.2 If you are converting an existing SAGA cash ISA to a fixed rate ISA, your Account will start from the date you ask us to do the conversion. You can repay replacement subscriptions you have withdrawn from your SAGA cash ISA into your Account, providing you are converting in the same tax year as the withdrawals were made. You cannot replace any withdrawals made from your SAGA cash ISA in previous tax years. You can only pay in replacement subscriptions to your Account while this fixed rate ISA issue remains on offer. We explain what a replacement subscription is in condition 3.9 below.
2.3 The administration of your Account will be carried out by Birmingham Midshires. Queries about your Account can be made through our Saga Savings Team on 0345 850 0664. The lines are open Monday to Saturday 8am to 8pm. Alternatively, for more information, visit our website at www.saga.co.uk/savings
2.4 You can only operate your Account by post.3 DEPOSITS AND WITHDRAWALS
3.1 You can pay all or part of your yearly ISA allowance into your Account until we stop offering it. You can do this by:
(a) transfer from a cash ISA with another ISA manager which you have subscribed to in the same tax year (in which case you must complete a ISA Transfer Authority Form as part of your application); or
(b) transfer from a stocks and shares ISA, innovative finance ISA or lifetime ISA with another ISA manager which you have subscribed to in the same tax year (in which case you must complete an ISA Transfer Authority Form as part of your application); or
(c) sending a cheque to, Saga Savings Team , PO Box 2264, Pendeford Business Park, Wobaston Road, Wolverhampton, WV9 5HZ; or
(d) transferring money from other accounts you hold with us. Call us on 0345 850 0664 if you’d like to discuss this further.
3.2 If your spouse or civil partner dies, you can pay an amount up to the total balance held in their cash ISAs at the time of their death into your Account while this fixed rate ISA issue remains on offer (we refer to this as an ‘additional permitted subscription’ in these conditions). You can also pay some or all of an additional permitted subscription into your Account by transferring money from another account you hold with us or by sending us a cheque. You must contact us and complete the necessary documentation before paying in an additional permitted subscription. You must pay in any additional permitted subscription within the time-limits set out in the ISA Regulations. We will tell you about these time-limits when you apply for your account and each time you make an additional permitted subscription. We will not accept additional permitted subscriptions to this ISA once we have stopped offering the Account. These payments do not count as part of your annual ISA allowance.
3.3 You can also transfer any funds from a cash, stocks and shares, an innovative finance or lifetime ISA with us or another ISA manager, which you have subscribed to in previous tax years, into your Account until we stop offering this fixed rate ISA issue (in which case you must complete an ISA Transfer Authority Form as part of your application).
3.4 The maximum yearly allowance you can pay into a cash ISA in any tax year is set by the Government. To find out the latest allowance contact us or HMRC.
3.5 You can only pay into your Account while this fixed rate ISA issue remains on offer. If you pay less than your yearly ISA allowance (or less than the total of any additional permitted subscriptions) into your Account during this period, you will limit the amount you can save in a cash ISA in the same tax year. You can pay any remaining ISA allowance into a stocks and shares, an innovative finance or lifetime ISA.
3.6 You can make a withdrawal or transfer out to another ISA from your Account at any time. If you do so, we will charge you an early access charge - see condition 3.7 for full information. The funds in the Account, together with any interest earned and less the early access charge, will be paid to you. When you ask us to withdraw money from your Account, we will do this either by sending you a cheque, or by electronic transfer using the Faster Payment Service if you have provided us with details of the account you wish the payment to be sent to.
3.7 Early access charges. The amount of the early access charge will depend on the remaining term of the Account and will be equivalent to the number of days' tax free interest as detailed in the table below. Any withdrawal charge will be taken from the account balance and could mean that you get back less money than you deposited.
Length of remaining term at the time of withdrawal 1 year or less Up to 2 years Up to 3 years Up to 4 years Up to 5 years
Withdrawal charge on the amount taken out of your account – equivalent in days tax free interest 90 days 180 days 270 days 320 days 365 days
If your remaining term includes part of a year your early access charge will be calculated based on the next whole year e.g. 18 month term = the 2 year early access charge. There is no early access charge if the account holder dies.
3.8 The rate used to calculate any withdrawal charge, will be the interest rate at the time the withdrawal is made.
3.9 Funds withdrawn from a cash ISA can be paid back into the account within the same tax year (in these conditions we call these repayments 'replacement subscriptions'). While we are still offering this fixed rate ISA issue, you can pay replacement subscriptions back into your Account. You can withdraw up to the total balance of your Account, but if you have less than £1 in your Account it will be closed.
3.10 If you withdraw funds from your Account while we are still offering this fixed rate ISA issue, payments into your Account will be treated as replacement subscriptions. When all withdrawn funds have been replaced, any further payments in to your Account will be treated as payments in of your yearly ISA allowance. You cannot replace funds with replacement subscriptions once we have stopped offering this fixed rate ISA issue or if we close your Account. Replacement subscriptions do not count towards your yearly ISA allowance. You cannot replace funds we deduct from your Account as charges (see condition 3.7 above) with replacement subscriptions.
3.11 When we have stopped offering this fixed rate ISA issue, you can withdraw from your Account but you will not be able to replace this money with replacement subscriptions. You may be able to replace any withdrawals from your Account in the last tax year your Account is open when you change your account to another SAGA ISA at the end of the fixed rate period.
3.12 If you withdraw current year subscriptions from your Account and do not repay these funds with replacement subscriptions, you can pay an amount equivalent to the amount withdrawn into a stocks and shares, an innovative finance or lifetime ISA as part of your yearly ISA allowance.4 TRANSFERRING YOUR EXISTING ISA TO US
4.1 If you ask to transfer your existing cash ISA to us we will contact your existing ISA provider within 5 days and the process should not take more than 15 working days to complete.
4.2 If you ask to transfer your existing stocks and shares, an innovative finance or lifetime ISA to us, the process should not take more than 30 days to complete.
4.3 Before you decide to transfer your ISA to us, please check the charges your existing ISA provider might apply. For example, if you have a fixed term cash ISA there may be a charge if you want to move your money out before the account matures. If you have a stocks and shares, an innovative finance or lifetime ISA, your provider may impose exit charges or other costs. In addition, the investments you currently have in a stocks and shares ISA will have to be sold and it is possible that you could lose out if there is a rise in the market while your transfer is processed.
4.4 If you transfer previous years’ subscriptions to your Account these will not count towards your yearly ISA allowance. If you transfer payments you have made to your existing ISA in the current tax year, these will count towards your yearly ISA allowance for your Account.
4.5 If you have withdrawn previous years' subscriptions from your existing ISA and not replaced them before you ask to transfer your whole balance and close your account, you will not be able to replace these funds once the ISA transfer process starts. This will reduce the amount of money you are able to save tax free in your Account.5 TRANSFERRING YOUR ACCOUNT TO ANOTHER PROVIDER
5.1 You can ask to transfer all subscriptions made to your Account during the current tax year, and / or the whole or part of your cash ISA deposits (and interest) from a previous tax year or years, to a cash, stocks and shares, an innovative finance or lifetime ISA with another ISA provider, in which case you must complete a transfer application with your new provider who will send the transfer application to us. Within 5 bank working days of receiving the transfer application from your new provider, we will send your money and information to your new provider. It should take no more than 15 working days to transfer a cash ISA and no more than 30 days to transfer a stocks and shares, an innovative finance or lifetime ISA.
5.2 If you transfer your Account during the fixed rate period the charges in condition 3.7 will apply.6 INTEREST
6.1 The Account pays a fixed interest rate for a fixed term depending on the balance in the account. You can find out the current interest rates for your account by telephoning us on 0345 850 0664.
6.2 Interest is calculated daily.
6.3 If you do make a withdrawal, this may affect the interest rate on your new Account balance.
6.4 If you have chosen to receive yearly interest paid back to your Account (see condition 6.5 below), this may affect the interest rate on your new Account balance.
6.5 If you have chosen to receive interest monthly, this will be paid on the first day of each month and can be paid to your Account, to another Saga Savings account or to another bank or building society account. If you have chosen to receive interest yearly , this will be paid 12 months after the date we credit your Account with your opening deposit, or if that is not a bank working day, the first bank working day after that. Yearly interest can be paid into your Account, to another Saga Savings account or to another bank or building society account – you will make this choice when you open your Account. Interest payments to non Saga accounts will reach the other account on the next bank working day. Interest paid to another account can be replaced in the same tax year by replacement subscriptions to your Account (subject to the paying in restrictions in 3.9).
6.6 As long as you and your Account continue to qualify, interest will be paid tax-free.
6.7 As explained in conditions 3.6 and 3.7 you will pay an early access charge on any payments/transfers out or withdrawals during the fixed rate period.
6.8 Where the term of the Account is for 12 months or less, yearly interest must be paid back into the Account.7 CHANGES TO THE ISA REGULATIONS
7.1 Any changes made by the Government to ISA Regulations that affect these conditions will apply as soon as they come into force.
7.2 Favourable tax treatment for ISAs may not be maintained (the Government is responsible for decisions about tax treatment).8 OTHER TERMS
8.1 We are required to provide details of all ISA holders to HMRC. If you are or become non-resident in the UK, HMRC may be required to share this information with tax authorities in your country of residence.
8.2 We will send you a statement 12 months after your first deposit, and then yearly after that.
8.3 We will send you a duplicate statement on request.
8.4 We may delegate any function or responsibilities under this agreement to a third party. If we do so, we will first satisfy ourselves that the third party is competent to carry out those functions and responsibilities.9 END OF THE FIXED RATE PERIOD
9.1 Before the end of the fixed rate period we will write to you and ask you for your instructions about what you’d like to do with your money on maturity. If we do not hear from you, we will put your money in an easy access ISA.
9.2 If you have withdrawn funds from your Account in the same tax year that your account converts to an easy access ISA, you can replace these funds with replacement subscriptions after your Account becomes an easy access ISA. You cannot replace withdrawals made from your Account in previous tax years with replacement subscriptions to your easy access ISA.10 CLOSING YOUR FIXED RATE ISA
10.1 You can close your Account at any time subject to conditions 3.6 and 3.7 and any interest earned will be tax-free. If you have paid some or all of your yearly ISA allowance into your Account in the same tax year as you close it, you cannot open a new cash ISA for the same tax year, unless that cash ISA is opened solely to pay in an additional permitted subscription.
10.2 If your Account stops qualifying as an ISA we will close it and notify you. Any interest earned on your funds will be paid gross without taking off any income tax. You will be responsible for paying any tax due on this interest to HMRC.
10.3 Your Account will cease to qualify as an ISA in the following circumstances:
(a) if the terms of the declaration on the application form are or become untrue;
(b) if you transfer any of your rights as an account holder or use your Account as security for a financial liability;
(c) from the date of your death; or
(d) if HMRC instruct us accordingly.
10.4 If you die, your Account balance will normally be paid to your estate. When we receive notice of your death we will close your Account and pay any interest earned up to the date of death tax free. We will transfer the balance to a new variable account on which interest earned will be paid gross. There will not be an early access charge in those circumstances. Your spouse or civil partner will be entitled to an additional permitted subscription allowance equal to the balance of your cash ISA on death (including any interest accrued at the date of your death). They will not be eligible for this additional permitted subscription allowance if you are separated at the time of your death.
10.5 We will notify you if, by reason of any failure to satisfy the provisions of HM Treasury ISA Regulations, your Account stops qualifying as an ISA.11 CANCELLATION
11.1 If you apply for this Account you will be able to change your mind and cancel your account at any time before the end of the 14-day period starting on the day your Account is opened or the day you receive your welcome letter, whichever is later. If you cancel your Account within the 14 day period, you are free to subscribe to another cash ISA in the same tax year. If you miss the 14 day deadline you can still close your account subject to the withdrawal charge (see condition 3.6). If you do this you will not be able to open another cash ISA either with us or with another provider in the same tax year. If you decide to cancel we will repay you any money you have paid together with any interest due on it, or help you to switch the balance to another account. To cancel this agreement you should tell us by writing to us at Saga Savings Team, PO Box 2264, Pendeford Business Park, Wobaston Road, Wolverhampton, WV9 5HZ. There are no charges for cancelling your Account agreement within the 14 day period, and you do not have to give any advance notice.