Online Fixed Rate Cash ISAs

Transcription

1 Online Fixed Rate Cash ISAs One of our Online Fixed Rate Cash ISAs could be right for you if: You have a lump sum to invest and you do not wish to pay in throughout the tax year. You want to open and manage your account online. You want the security of a fixed rate of that s guaranteed for the term of the ISA, rather than a variable rate that can go up or down. You want to be able to transfer in ISA savings from previous tax years, if you have any. You want to choose between having your paid every month or once a year. Whichever option you take, you can have your either added to your account or paid into an external bank or building society account. Account name What is the rate? Annual Monthly Can Skipton Building Society change the rate? What would the estimated balance be at the end of the fixed term based on a 1,000 deposit? How do I open and manage my account? Can I withdraw money? Additional information Summary Box key savings account information 1 Year Online Fixed Rate 2 Year Online Fixed Rate 3 Year Online Fixed Rate 0.80% tax-free pa/aer 1.00% tax-free pa/aer 1.20% tax-free pa/aer Interest is earned daily and added to your account at midnight on the anniversary of the date your account was opened. 0.80% tax-free pa/aer 1.00% tax-free pa/aer 1.19% tax-free pa/1.20%aer Interest is earned daily and each month s is added to your account at midnight on the last day of the month. The rate is fixed for the term of this account. 1,008 1,020 1,036 The estimated balance projections above are based on the following assumptions: 1,000 is paid in when the account is opened and starts being earned straight away No further deposits or any withdrawals are made The is paid annually and added to the account The estimated balance is for illustrative purposes only and may be less if you open an account by debit card or cheque. This account is available to UK residents aged 16 or over and can only be opened and managed online. The first payment into the account can be by debit card, internal transfer from another Skipton Building Society account, or electronic payment from another UK bank or building society. You can also transfer ISA savings in from other providers via our ISA transfer service. After that, you can also pay in by cash (in branch only, and we ll need to see some photographic ID for the first cash payment), cheque (in branch or by post) or by standing order. You can deposit up to your total ISA allowance ( 15,240 for 2016/2017) and transfer ISA savings in until the account is no longer on sale, which can happen at any time without notice. Subsequent payments in can be made from 1 for up to 7 days after the date of your account opening. After this your account may be closed to further deposits at any time and without notice. You can save from 500 up to 1,000,000. No joint accounts allowed. You can t withdraw part of your account balance, however you can close your account at any time and withdraw the full balance online or transfer it to another ISA provider. If you do this you ll lose as shown below. This will be taken from your savings if you haven t earned enough on the account, and means you might get back less than you ve paid in. 180 days 180 days 240 days At the end of the fixed rate term, which is also known as maturity, your account will automatically transfer into a new 1 Year Online Fixed Rate Cash ISA, unless you tell us otherwise, and you ll have 21 days to change your mind. We ll you at least 14 days before maturity to explain what will happen when your account matures and any other options available at the time. You ll find more information about the maturity process in section 10 of the further terms and conditions on the following pages. You can cancel the account in the first 14 days, if you need to. The section What if I change my mind? over the page explains more about this. AER stands for Annual Equivalent Rate and shows what the rate would be if was paid and added each year. All ISA is paid tax-free, which means it s exempt from income tax. Tax rules may change in future. The AER allows you to compare the rates on savings accounts. The higher the AER, the better the return on your savings. It s worth noting that any of our accounts can be withdrawn from sale at any time and without notice. Please also make sure you read the important information and further terms & conditions on the following page(s). Page 1 of 5

2 Important information about ISAs How much can I save in a Cash ISA? The Government currently sets a tax-free allowance that you can save in an Individual Savings Account (ISA) each tax year (6 April 5 April). The allowance for the 2016/2017 tax year is 15,240. You can split your ISA allowance however you like between a Cash ISA, a Stocks and Shares ISA and an Innovative Finance ISA, as long as you don t subscribe to more than one of each type in the same tax year and don t go over the maximum overall limit. Here are some examples of how you could do this: Example Cash ISA Stocks and Shares ISA Innovative Finance ISA Total 1 5,080 5,080 5,080 15, ,240 5,000 5,000 15, ,240 Nil Nil 15,240 How do I transfer my existing ISA to a Skipton Cash ISA? We offer a simple, hassle-free ISA transfer service. Here s how it works: Step 1: If you re already registered for Skipton Online, simply log in, choose the ISA you want to transfer to and select the ISA Transfer In option. Otherwise, you can speak to us at your local branch or download a new application form and an ISA Transfer Authority Form at skipton.co.uk/isatransfers. Step 2: Send your completed forms to us or drop them off in branch and we ll take care of the rest. Transferring your ISA this way means your savings will stay tax-free. If you want to transfer your ISA savings for the current tax year, you can only transfer the whole amount. For transfers from previous tax years, you can transfer either some or all of the amount. Step 3: Within five working days of receiving your transfer instruction, we ll send it to your current ISA provider and tell them we ll accept the transfer. When your current ISA provider has transferred your money to us along with the information we need, we ll add the money into your ISA within three working days. We ll backdate the either to the date on the cheque sent by your current ISA provider, or to the 15th working day after we ve received your instruction (for a Cash ISA or Innovative Finance ISA transfer) or the 26th working day (for a Stocks and Shares ISA transfer), whichever is the earliest. However, if the transfer can be completed using the electronic ISA transfer system, your transfer will be completed within 7 working days. We can also keep you updated by text message on how your ISA transfer is progressing. If you choose this service, we ll send you a message when the transfer request has been input on our system and a final message to confirm when we ve received the money from your current ISA provider. Can I transfer my Skipton Cash ISA to another provider? We d love you to stay with us and if there s anything you re not happy about we re here to help. However, you can transfer your Skipton Cash ISA to another ISA provider (see section 6 of the further terms and conditions on the following pages for more details). Depending on your existing Skipton account (for example, if you have a fixed rate) there might be an penalty. The rules for ISA transfers are as follows: On receipt of a transfer instruction from your new ISA provider, we will send your funds and accompanying information to them within five business days of the date of receipt. You can transfer previous years Cash ISAs into a Stocks and Shares ISA, an Innovative Finance ISA and/or another Cash ISA without affecting your annual ISA allowance (subject to the specific account terms and conditions of the new ISA). If you transfer your current tax year savings from a Cash ISA to a Stocks and Shares ISA and/or an Innovative Finance ISA, the money transferred will be treated as if you had invested that money directly in that ISA e.g. if you had saved 2,240 in a Cash ISA and then transferred to a Stocks and Shares ISA, you could then invest the rest of your 13,000 as you like into a Cash ISA, an Innovative Finance ISA and/or the Stocks and Shares ISA. What if I change my mind? No problem. You have 14 days from the date you receive your Cash ISA confirmation to change your mind. You can cancel your account by letting us know in writing during this period and your cancelled ISA won t count as an ISA subscription. Any that you ve earned during this period will be paid gross, which means no tax is deducted. It s your responsibility to pay any tax due, based on your individual circumstances. Please note that this is only for new ISA applications, not transfers or account switches. What if I m new to Skipton? If you re a new customer, we ll need your National Insurance number and some form of identification and confirmation of address. Where possible, we will use electronic verification to confirm your identity. However, we can t do this for postal applications, for children under 18 in England, or if you are not on the electoral roll for your current address. There s a full list of the types of identification we can accept in our Proving Your Identity leaflet or at skipton.co.uk/id. The Financial Services Compensation Scheme This product is covered by The Financial Services Compensation Scheme. For more information please call us on , ask in branch or visit Let us know what you think If you are not satisfied with our services we have an internal complaints procedure. For more information please call us on , ask in branch or visit The Financial Ombudsman Service provides a free and independent service for consumers, and can be contacted at The Financial Ombudsman Service, Exchange Tower, London E14 9SR. Telephone: Page 2 of 5

3 For products and services bought online you can also refer to the Online Dispute Resolution platform (ODR) at consumers/odr/. As we re a UK building society, the ODR will still refer you to the Financial Ombudsman Service as the alternative dispute resolution body. The Financial Ombudsman Service will refer you back to our complaints process unless you ve already been through this. The Financial Conduct Authority is a financial services regulator. It requires us, Skipton Building Society, to give you this important information to help you decide whether one of our Online Fixed Rate Cash ISAs 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. Further terms and conditions for our Online Fixed Rate Cash ISAs 1. What terms apply? 1.1 These conditions must be read in conjunction with the Society s Investment Account Terms and Conditions (which apply to all the Society s savings accounts and are available on request or via our website). Before opening an account, we strongly advise for your own benefit and protection that you read all of the terms and conditions as you will be legally bound by them and we intend to rely on them. If you do not understand any point please ask for further information. 2. Operation of the account 2.1 This account may only be opened by an individual aged 16 or over who is resident in the UK for tax purposes or, if not so resident, performs duties which by virtue of Section 28 of the Income Taxes (Earnings and Pensions) Act 2003 (Crown Employees serving overseas) are treated as performed in the UK, or is married to, or in a civil partnership with, a person who performs such duties. 2.2 The account must not be a joint account or held on behalf of a person other than the account holder. 2.3 The ISA investment will be, and must remain in, the beneficial ownership of the investor and must not be used as security for a loan. 2.4 The account will be operated in accordance with prevailing rules and regulations and legislation which may, of course, be varied from time to time, by the Government. 2.5 If you breach the ISA regulations, HM Revenue and Customs will instruct us to remove the funds from the Cash ISA, your account will become void and we ll write to notify you. Income tax will then become payable at the appropriate rate on the gross that has already been paid. This will also apply if you become bankrupt. 2.6 The account holder must not subscribe to more than one Cash ISA in any one tax year. 2.7 We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities under the terms agreed with you is competent to carry out any of those functions and responsibilities. 2.8 In the event of death, due up to the date of death will be paid into the account. The account will become a non ISA instant easy access account from the date of death. In this event we will advise you of the new rate and terms of the account. 2.9 In order to guarantee the term offered, an online application form must be completed and an electronic payment, debit card payment and/or transfer from another online Skipton Building Society account must be received before the ISA is withdrawn from sale, which may be at any time and without notice No certificate will be issued for this account. If you cease to be eligible for an online account your account will automatically be changed to an offline version of this account You will only be entitled to receive an online statement. 3. Payments into your account 3.1 Payments into your account can be made by: debit card; or cash (branch only, photographic identification will be required in branch for the first cash payment); or electronic payment from another UK bank or building society account; or cheque; or transfer from another online Skipton Building Society account (subject to the terms and conditions of those accounts and in particular any notice period or restrictions on withdrawals). Please contact us if you want to transfer from non-online Skipton accounts. 3.2 Subsequent payments in can be made from 1 for up to 7 days after the date of your account opening. After this your account may be closed to further deposits at any time and without notice. 4. Minimum and maximum deposits 4.1 The minimum opening deposit is Electronic payments which do not comply with the minimum or maximum deposit limits will be returned to their source automatically. 4.3 In accordance with ISA regulations, investments in any tax year are limited to the amount permitted by HM Revenue and Customs regardless of the level of withdrawals made. 4.4 The maximum overall subscription for the 2016/2017 tax year is 15,240. Any amount not invested in a Cash ISA can be invested in a Stocks and Shares ISA and/or an Innovative Finance ISA, subject to the maximum overall limits. You can split your ISA allowance as you like between a Cash ISA, a Stocks and Shares ISA and an Innovative Finance ISA, as long as you don t subscribe to more than one of each within any given tax year. 4.5 You can only invest in subsequent tax years where the ISA has not been withdrawn from sale 4.6 Where you do not invest your full Cash ISA allowance of 15,240 for the 2016/2017 tax year and the ISA becomes withdrawn from sale, the only way you will be able to utilise your full ISA allowance will be to transfer your Cash ISA to another Skipton Cash ISA or another ISA provider, in which event you will incur an penalty as explained in the Withdrawals terms. Page 3 of 5

4 5. Withdrawals (including closure) 5.1 Partial withdrawals are not permitted. 5.2 Full balance withdrawals require no notice and must be made by electronic payment or by transfer to another Skipton Building Society account (subject to the terms and conditions of those accounts and in particular any notice period or restrictions on payments in). Full balance withdrawals including transfers to other ISA providers are subject to the loss of the following number of days according to the product terms: 180 days for the 1 Year Fixed Rate ISA 180 days for the 2 Year Fixed Rate ISA 240 days for the 3 Year Fixed Rate ISA 365 days for the 5 Year Fixed Rate ISA 5.3 If you close your Cash ISA you will lose your tax free benefits for previous or current allowances, whichever are applicable, for the amount at the time of closure. This means that you will be unable to replace the amount withdrawn in the future. 5.4 On receiving your instructions and subject to any withdrawal limits and restrictions, all of the funds in your account, together with earned will be paid to you within the time stipulated by you or within five days of receiving your request, whichever is the longer. 5.5 If there is insufficient added to the account, the loss of will be taken from the capital deposited which means you may get back less than you invested. 6. ISA transfers in or out 6.1 Transfers in from other Cash ISAs, Innovative Finance ISAs and Stocks and Shares ISAs are allowed. On receipt of your transfer instruction we will send it to your current ISA provider, together with confirmation that we will accept the transfer, within five business days of the date of receipt. On receipt of the funds and accompanying information from your current ISA provider, we will credit the funds to your ISA account within three business days of the date of receipt. 6.2 Subject to any restrictions on withdrawal if you wish to transfer all your ISA to another ISA provider we will transfer the account within the time stipulated by you, with all rights and obligations, in accordance with the ISA regulations relating to transfers. On receipt of your transfer instruction from your new ISA provider, we will send your funds and accompanying information to them within five business days of the date of receipt. 6.3 Partial transfers out to another provider are not permitted. 6.4 If you close or transfer to another ISA provider within the fixed term you are subject to an penalty (as mentioned in the Withdrawals section). This will be taken from the capital deposited if there is insufficient added to the account. This means that you may get back less than you invested. 6.5 Transfers out can be made to another Cash ISA, a Stocks and Shares ISA or an Innovative Finance ISA. Any current years transfers to a Stocks and Shares ISA or an Innovative Finance ISA will be treated as if that money had been invested directly in that ISA. If you wish to transfer your account to another ISA provider please contact your new provider. 6.6 Transfers to and from another Skipton Building Society account are subject to the terms and conditions of those accounts and in particular any notice period or restrictions on withdrawals or payments in. 7. Interest rate and payment of 7.1 The rate is fixed for the term of this account. 7.2 Interest is accrued daily. 7.3 If you choose the annual option, is added to your account at midnight on the anniversary of the opening date. The opening date is the day funds are received into your account. Alternatively, can be paid into another suitable Skipton Building Society account or any other UK building society or bank account. In that case, will be paid on the first working day following the date is due. Note: working days exclude Saturdays, Sundays and Bank Holidays. 7.4 If you choose the monthly option, accrued during the preceding month is added to your account at midnight on the last day of each month. Alternatively, can be paid into another suitable Skipton Building Society account or any other UK building society or bank account. In that case, will be paid on the first working day following the anniversary date of the opening of the account. For example; if the account is opened on 15 January would be sent to your bank account on the 16th of each month thereafter. 8. Non Payment Account 8.1 This account is intended to be used as a savings account and thus is not intended to be used for multiple monthly transactions like a current account. It is not a Payment Account for the purposes of the Payment Services Regulations Membership rights and the Society s Rules 9.1 This account is a share account which confers membership rights and is subject to the Rules of the Society. Copies of the Rules can be obtained from our website or any branch or from our Principal Office. 10. Maturity of your Cash ISA 10.1 When your current fixed rate Cash ISA matures, or any further fixed rate Cash ISA you continue your investment in, we will follow the maturity process outlined in the next section entitled What happens on maturity of my new Online Fixed Rate Cash ISA?. Page 4 of 5

5 What happens on maturity of my new Online Fixed Rate Cash ISA? We ll you at least 14 days before maturity to explain what will happen when your account matures and to tell you about the other options available at the time. Your options will include: Continue saving in a 1 Year Online Fixed Rate Cash ISA (the do-nothing option); Transfer your savings into a different ISA; Transfer to an easy access ISA; Add extra savings to the above three options; Withdraw some or all of your money or transfer in full to another ISA provider. If you do-nothing, we ll add any due to your account and your savings will automatically transfer into a new 1 year Online Fixed Rate Cash ISA, which will have the same restrictions on withdrawals. We ll then send you confirmation of your new account within seven days of your Online Fixed Rate Cash ISA maturity. You ll have 21 days from maturity to change your mind and close the account. If the do-nothing option applies, the further terms and conditions will still apply, as well as our Investment Account Terms and Conditions, although the rate, the date that will be applied to your account and the minimum and maximum amounts you can save might be different. If your account balance at maturity is above or below the minimum or maximum amounts, you ll still be able to continue your existing investment, but any new transactions will be subject to these limits Skipton Building Society is a member of the Building Societies Association. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number , for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice. Principal Office, The Bailey, Skipton, North Yorkshire BD23 1DN. Page 5 of 5