For the
road ahead
Savings
The Financial Services Authority is the independent
financial services regulator. It requires us to give
you this important information to help you to decide
whether the AA Fixed Rate ISA, provided by Birmingham
Midshires, a division of Bank of Scotland plc, is right for you.
You should read this document carefully so that you
understand what you are buying, and then keep it safe for
future reference.
AA Fixed Rate ISA
Cash ISAs explained
An ISA, or Individual Savings Account, can offer a very attractive way to help you pay less tax on your savings. Whether or not you pay tax on your income or other savings, you won’t have to pay any personal income tax on ISAs.
You can only open one cash ISA each tax year and you can deposit up to £5,340 in a cash ISA this tax year. You can save in a cash ISA in the same year that you invest in a stocks and shares ISA. For further information about stocks and shares ISA limits,please see ‘Key Questions’.
Tax treatment depends on individual circumstances and may change.
AA Fixed Rate ISA in detail
l The AA Fixed Rate ISA is a cash ISA.
l You can open your account with as little as £1 and deposit a maximum of £5,340, for the
current tax year. Your initial deposit should be for the full amount you would like to save.
l You know exactly what rate of interest you’ll earn over the full term of your account. l We can close this issue at any time, and if we do so, you won’t be able to pay any
more money into it. If you haven’t used this year’s full cash ISA allowance, but plan to pay in more money during this tax year, it may be best to do so now because if you decide to delay and we close the issue, you won’t be able to pay in any more money. Also you won’t be able to open another cash ISA in this tax year.
l Interest will be paid yearly.
l Withdrawals are allowed by post subject to a charge. The charge will depend on the
remaining term of the account and is the equivalent of a number of days tax free interest, this can be between 90 and 365 days. This charge will be taken from the account balance and depending on when the withdrawal is made, may result in you getting back less that you originally deposited.
l If your chosen AA Fixed Rate ISA is fully subscribed at the time we receive your funds
(cheque or transferred funds) we’ll either return your application along with your cheque and any other instructions we receive, or contact you about other offers we currently have.
Interest
l The term of the account will run from the date of the first deposit. Your interest
is calculated daily and is paid yearly on the anniversary of the first deposit and again at maturity if applicable.
l Interest payments to non AA accounts will reach that other account by the end
of the next bank working day. (A bank working day is any day between 9am and 3pm which is not a Saturday, Sunday or English or Public Holiday.)
For full details about current interest rates, visit our website at theAA.com/savings or call the AA Savings Team on 0845 603 6302.
AA Fixed Rate ISA Key Questions
l Who can save in an AA Fixed Rate ISA?
You can save in an AA Fixed Rate ISA provided you’re 16 or over and resident and ordinarily resident in the UK for tax purposes. You can’t subscribe to more than one cash ISA in the same tax year. An ISA cannot be applied for in joint names.
l What are the current ISA limits?
Current ISA regulations allow you to invest up to £10,680 this tax year by choosing one stocks and shares ISA or a combination of one cash ISA and one stocks and shares ISA. You can save up to £5,340 in a cash ISA for this tax year.
l Can cash ISAs be transferred?
If you’ve already saved in a cash ISA for this tax year but would still like to save in our AA Fixed Rate ISA, you can do so by transferring some or all of your previous year’s subscriptions or all of your current tax year subscription into the AA Fixed Rate ISA. If you open a cash ISA and subsequently transfer it into a stocks and shares ISA, you can still save any remaining allowance in a cash ISA during the current tax year as long as the total investment limits are not exceeded.
You will only be able to transfer into an AA Fixed Rate ISA as long as the issue remains open.
l How can I view my balance?
You manage your AA Fixed Rate ISA by post. For terms of more than 12 months, we’ll send you a statement each year.
l Can I change my mind?
You can close an AA Fixed Rate ISA within 14 days of your application being completed. If you do so successfully within 14 days you can still open another cash ISA within the same tax year. After the first 14 days, you can still close your account subject to a loss of interest on the amount withdrawn. However, you may lose your tax free entitlement, unless you transfer to another ISA. For specific withdrawal arrangements, please see summary box. If you would like to close your account at any time, please write to our AA Savings Team at:
AA Savings PO Box 81
Pendeford Business Park Wobaston Road
Wolverhampton WV9 5HZ
l What happens at the end of the term?
We’ll write to you before your account matures, giving you options to help you decide what to do with your investment. If we do not hear from you before your account matures, we’ll re-invest your funds into a variable rate ISA of our choice.
Compensation scheme
We are covered by the Financial Services Compensation Scheme. For further information about the scheme (including the amount covered and eligibility to claim), please call us on 0845 603 6302, refer to the FSCS website www.FSCS.org.uk or call 020 7741 4100 or 0800 678 1100.
How to complain
If you do have a problem we’ll do our best to resolve it immediately. Where we cannot we’ll ensure you have the name and contact details of the person or team dealing with your complaint.
Tell us if there’s a problem
If you have a complaint or just want to tell us about something we could do better, there are a number of ways you can let us know:
By telephone: call the AA Savings Team on 0845 603 6302
By post: write to us at The AA Customer Relations Team, Birmingham Midshires, PO Box 81, Pendeford Business Park, Wobaston Road, Wolverhampton, WV9 5HZ
If you’re still not happy
We’ll do our best to sort things out but if we can’t put things right to your
satisfaction, you can ask the Financial Ombudsman Service to look at your complaint - provided you have tried to resolve the matter directly with us first.
We hope you don’t need to contact the Financial Ombudsman Service but if you do, we’ll tell you how to do this.
Opening an AA Fixed Rate ISA
For further information and to apply, please visit theAA.com/savings to complete the application form or call the AA Savings team on 0845 603 6302.
For more information on the AA Fixed Rate ISAs, call our AA Savings Team on 0845 603 6302.
Account name Interest rates (AERs)
AA Fixed Rate ISA
For current interest rates and details of the terms available, please refer to the letter with this brochure, visit theAA.com or call
0845 603 6302. The interest rate on this account is fixed Tax status Interest will be paid tax free. Tax treatment depends on your
individual circumstances and may change.
Conditions for bonus payment There is no bonus available on this account
Withdrawal arrangements Withdrawals are allowed by post subject to a charge. The charge will depend on the remaining term of the account and is the equivalent of a number of days tax free interest. Any withdrawal charge will be taken from your account balance.
1 year or less: 90 days loss of tax free interest Up to 2 years: 180 days loss of tax free interest Up to 3 years: 270 days loss of tax free interest Up to 4 years: 320 days loss of tax free interest Up to 5 years: 365 days loss of tax free interest
Access Postal
Summary Box
Key Product InformationPO Box 81, Pendeford Business Park, Wobaston Road, Wolverhampton WV9 5HZ. Telephone: 0845 603 6302
Calls may be monitored and recorded for security and training purposes. Lines are open Monday to Saturday 8am to 8pm. The deposit taker for AA Savings accounts is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered in the FSA’s Register and its Register Number is 169628. Registered office: The Mound, Edinburgh EH1 1YZ. (Registered in Scotland No. SC327000).
D470/8255 / 5728AP November 2011
17387.0
This information is also available on request in large print, Braille or audio.
Customers can also contact us by using Text Relay.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
Tax free is the contractual rate of interest payable where interest is exempt from income tax. Tax treatment depends on your individual circumstances and may change.
