Saga ISA Easy Access Account Conditions

SAGA ISA Easy Access Account conditions

In these conditions ‘we’, ‘our’ and ‘us’ means Bank of Scotland plc – Birmingham Midshires is a division of Bank of Scotland.

Our agreement with you is made up of three kinds of conditions:
The General Savings Conditions (‘general conditions’) which include the main terms for your savings account and for our overall relationship with you.

The Account conditions below.

Any other additional conditions including the details of interest rates, charges and other terms that apply to a specific account or service, for example, in application forms, rates leaflets, letters or on our website. 

If an additional or Account condition conflicts with a general condition, the additional or Account condition applies.

Our general conditions explain that we treat payment and non-payment accounts differently when we make any changes to your conditions or interest rate.  This Account is a non-payment account.

Your ISA Easy Access Account is administered by Birmingham Midshires. You can find out about the current interest rate for your Account by calling 0345 850 0664 or going online at www.saga.co.uk 

Opening an ISA Easy Access Account
To open an ISA Easy Access Account you must:


Be 50 or over. 

Be 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.

Want an account in your sole name – you can’t have an ISA jointly with anyone else.

Pay in at least £1. Your account will start from the date of your first deposit.

Complete an application form, you can do this online or by telephone.

Having an ISA Easy Access Account

Our interest on ISA Easy Access Account:

Is variable and can change.

May depend on the balance in your Account (please check your interest rate details).

Is calculated daily.

Will be paid on the interest payment date you choose when you open the Account. This can be either:
yearly on the anniversary of the Account opening date (if this day falls on a non-bank working day, interest will be paid on the next bank working day); or 
monthly on the first bank working day of each month. 

Is paid into your account, unless you ask us to pay it to a different account with us or another bank or building society when you open your account.

Will be paid tax free as long as you and your account meet the ISA regulations.

Operating your ISA Easy Access Account:

By post only.

You can pay in up to the annual ISA allowance each tax year.

Unlimited withdrawals but remember that if you make a withdrawal you should pay that money back in before the end of the tax year, otherwise the amount you can save will be limited (see the flexible ISA section below).

We will send you an annual statement. We will send you a copy statement if you ask for one.

The end of your 12 month ISA Easy Access Account term

At the end of your ISA Easy Access Account:

Your Account will automatically become an ISA Standard Saver Account. This will happen on the first working day after the 12 month period following your first deposit. Your account number and sort code will not change. 

We will write to you before the end of the 12 month period and provide you with the conditions for ISA Standard Saver Account. We may also provide you with information about other ISAs we are able to offer you.

You can continue to replace any withdrawn funds after your Account becomes an ISA Standard Saver Account, until the end of the tax year in which you made the withdrawals (see the section below on flexible ISAs).

More about your ISA Easy Access Account

If you have an ISA Easy Access Account you must:

Not subscribe to more than one cash ISA in the same tax year (unless you are transferring your ISA – see the transfers section), or you are using the additional permitted subscription allowance following the death of your spouse or civil partner (see the ISAs on death section).

Not use it as security for a loan or transfer it to anyone.

Let us know if you move abroad. If you are no longer resident in the UK for tax purposes, your ISA Easy Access Account will continue to receive interest tax free, but you won’t usually be able to pay any more money into it.  This restriction on paying in will not apply unless you are a Crown employee serving overseas, or you are married to or in a civil partnership with a Crown Employee serving overseas.

Make a new application if you have not paid anything in for a full tax year and you want to make a fresh payment into your ISA Saver Account. (This does not apply if you want to pay back money you withdrew during the current tax year and have not yet replaced).

Only pay in money that belongs to you.

We will contact you if a failure to follow the ISA rules or your account conditions means your Account no longer qualifies as an ISA. If your Account stops qualifying as an ISA income tax may be due on any interest earned, including interest already paid. You will be responsible for paying any tax due to HM Revenue & Customs.

Your ISA Easy Access Account is flexible so:

You can withdraw up to the total amount of your ISA, including amounts you paid in during previous tax years (but if you have less than £1 in your account it will be closed).

As long as you do so in the same tax year, you can then replace withdrawals from your ISA Easy Access Account by paying them, back into the same account.

If you make a withdrawal and then pay money into your Account we will assume you are replacing some or all of the money you withdraw. This means your payments into your account will only count towards your ISA savings limit if the total amount you pay in is more than the amount you have withdrawn in that tax year.

You cannot pay back the amount of any withdrawal you made in a previous tax year.  If you do not pay back the amount of any withdrawal in the same tax year you will limit the overall amount you can save tax free.

If you withdraw all or part of the money you pay into your Account earlier in the tax year but don’t replace it, you can pay the equivalent amount into a stocks and shares or innovative ISA before the end of the tax year as part of your annual ISA allowance.

If you make a withdrawal and don’t pay the amount of that withdrawal back in before you close your account, you cannot pay the amount into a different cash ISA you have with another provider even if it is the same tax year and that ISA is also flexible.

If you withdraw any amount you paid in during a previous tax year, you should replace those savings before you ask to transfer and close your Account, otherwise you will not be able to do so, and you will limit the amount you can save tax free. 

If you convert an existing Saga cash ISA into an ISA Easy Access Account, you can repay any replacement subscriptions you have withdrawn you’re your existing ISA into your ISA Easy Access Account, providing you are converting in the same tax year as the withdrawals were made.

ISA transfers

What can I transfer?

Your existing cash ISA, stocks and shares ISA or Innovative Finance ISA from another provider to an ISA Easy Access Account.

Your ISA Easy Access Account to a cash ISA, stocks and shares, innovative or lifetime ISA with another provider.

How long will it take?

If you are transferring an existing cash ISA it should not take more than 15 working days.

If you are moving an existing stocks and shares, innovative finance or lifetime ISA it should not take more than 30 calendar days.

If you ask to transfer your ISA Easy Access Account to another provider, we will send them your ISA savings and information within 5 working days of receiving your transfer request.

If you are transferring to an ISA Easy Access Account:

Before you decide whether to transfer your existing ISA check your provider’s charges for doing this – for example early closure charges or exit charges.

If you want to transfer a stocks and shares ISA, your stocks and shares will be sold as part of the process. It is possible you could lose out if there is a rise in the market while your transfer is processed.

Additional rules apply to lifetime ISAs and a Government charge applies to some withdrawals. You should ask your lifetime ISA provider for full details.

If you transfer previous years’ subscriptions paid to your existing ISA to your ISA Easy Access Account these will not count towards your yearly 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.

If you ask to transfer a flexible ISA in full and you have withdrawn all or part of any amount you paid into it in a previous tax year, you will not be able to replace these withdrawals once the transfer process starts.  This will limit the amount you can save tax free.  To prevent this you should replace your withdrawal before you ask to transfer your ISA.

ISAs on death

How we treat your ISA Easy Access Account if the account holder dies:

If you die before the 6th April 2018 the tax free status of your ISA Easy Access Account will end on the date of your death. Once we’re notified, we’ll transfer your Account balance to a new variable account and whoever looks after your estate will be able to close it. We will pay the interest gross. They will be responsible for notifying HM Revenue & Customs and paying any tax which is due.

If you die on or after 6th April 2018 the tax free status of your ISA can continue until the earliest of:


  • your account being closed; or
  • three years from the date of your death.

During this time we will continue to pay interest tax free.  Whoever looks after your estate will not be able to pay any more money into your account, and any money withdrawn (including any withdrawals you made before the date of your death) cannot be replaced.  

If the 12 month term of your ISA Easy Access Account ends after your death, your account will automatically become an ISA Standard Saver Account.  We will tell whoever looks after your estate before this happens.

When we receive notice to close a deceased’s ISA account, we will send a cheque for the balance and any interest earned up to the date of closure to the executors of the deceased’s estate.  

If your Account is still open three years from the date of your death its tax free status will end.  We’ll transfer your ISA balance and any interest earned during the 3 years to a new easy-access savings account, and whoever looks after your estate will be able to close it.   We will pay the interest gross. They will be responsible for notifying HM Revenue & Customs and paying any tax which is due.

Additional permitted subscription allowance

A spouse or civil partner who was living with the ISA holder at the time of their death can qualify to save an ‘additional permitted subscription’.

If you qualify to save an ‘additional permitted subscription’ and your spouse or civil partner died before the 6th April 2018 you can pay in up to the amount the ISA holder had in ISAs at the time of their death (including any interest earned up to that date). If you qualify to save an ‘additional permitted subscription’ and your spouse or civil partner died on or after 6th April 2018, you can choose whether to calculate this based on the value of the ISA holder’s ISAs either at the date of their death or a later date.  This later date could be: 


  • the account being closed; or
  • three years from the date of death.


If your spouse can choose to take the value of the additional permitted subscription at date of death or the date the ISA is closed, they must make the same choice for all ISAs held with the same provider. If your spouse chooses to take the additional permitted subscription when the ISAs are closed, they will only be able to pay in an additional permitted subscription when all of the ISAs held with the same provider have been closed. They can ask for a different date (including the date of death) to be used for ISAs held with different providers.  Once they have told a provider of the date on which they wish the additional permitted subscription to be taken, they cannot change their choice. 

If your spouse or civil partner chooses to take the value of the deceased’s ISA when it is closed, the additional permitted subscription allowance will never be lower than the value of the ISA at the date of death (but it may be higher).  But, if your spouse or civil partner chooses to take the value of the deceased’s ISA at the date of their death, this amount cannot be increased later. 

The additional permitted subscription allowance does not include any withdrawal(s) from the deceased customer’s flexible ISA(s) that had been withdrawn but not replaced at the date of death.

You can pay an additional permitted subscription on top of the amount you can save in ISAs otherwise.

You can pay an additional permitted subscription into an ISA Easy Access Account by transferring money you hold with us or by sending us a cheque. 

You must contact us to 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 contact us.

Closing your account

You can close your account:

At any time and any interest earned until the date of closure will be tax free. If you have paid some or all of your yearly ISA allowance into your ISA Easy Access Account in the same tax year as you close it you cannot open a new cash ISA for the same tax year unless that ISA is opened to pay in an additional permitted subscription.

Cancellation

If you change your mind:

You can cancel your ISA Easy Access 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. 

There are no charges for cancelling your Account agreement, and you do not have to give any advance notice.

You can subscribe to another cash ISA in the same tax year. 

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. 

You can cancel by writing to us at Birmingham Midshires, PO Box 81, Pendeford Business Park, Wobaston Road, Wolverhampton, WV9 5HZ.

Issue date: 6 April 2018