5 Year Fixed Rate Cash ISA – Issue 6
This account is suitable for you if you have £500 or more to save that you are not likely to need in the next 5 years.
This account is suitable for you if you would like to save at a rate you know will not change for the next 5 years and would like to earn tax-free interest on that money.
This account is not suitable for you if you have already subscribed to a Cash ISA in this tax year.
It is not suitable for you if you have less than £500 to save or if there is a chance you may need withdraw your money within the next 5 years, as withdrawals during this period carries a penalty. This account is also unsuitable if you are looking to make regular contributions to your savings, as you cannot add money to this account once it has been opened.
About this account
The interest rate is fixed Tax Free*** at 4.45% gross*/AER** for five years from the date the account is opened.
|Minimum Balance||ANNUAL Gross*||INTEREST AER**|
At the end of the fixed rate term, your account will automatically become a 7 Day Notice Cash ISA and the interest rate will be variable. (You can find the current rate payable on this account here.)
The interest rate is fixed and cannot be changed during the five year term.
Based on an initial deposit of £1,000.00 with interest added annually, the estimated balance would be £1,243.21 at expiry of the fixed rate term.
Assuming that no further deposits or withdrawals are made, and your account is changed to a 7 Day Notice Cash ISA at maturity, the estimated balance would be £1,276.16 after a further one year term.
These figures are provided for illustrative purposes only. They do not take into account your individual circumstances.
Savers must be 16 or over to open a Cash ISA and must be resident in the UK for tax purposes. The account cannot be a joint account nor can it be held on behalf of a person other than the account holder.
This account can be opened and managed by post or at any of our branches and agencies. Complete the application form and the declarations and consents. Take the completed documents and your deposit to one of our branches or agencies, or post them to us at the address in this document. Please make cheques payable to the account holder.
Please note, the minimum deposit must be credited to your account within 5 working days of the account being opened. If you fail to do so, you will be required to restart the application process.
The minimum deposit required to open an account is £500. No further deposits are then permitted, although you may at the time of account opening also transfer in existing Hinckley & Rugby ISA funds.
At the time of opening you may deposit funds up to the annual subscription limit, depending on any deposits you may have paid into a Stocks and Shares ISA, an Innovative Finance ISA or a Lifetime ISA. The annual ISA subscription limit in this tax year is £20,000.
During the fixed rate term, you may withdraw all or part of your savings (this includes an ISA transfer to another organisation), but if you do so you will lose a sum equivalent to 365 days’ gross interest on the amount withdrawn.
From maturity of the fixed rate term your account will become a 7 Day Notice Cash ISA, unless you tell us otherwise – you will have 14 days to change your mind.
The 7 Day Notice Cash ISA offers penalty free access to your savings, subject to a 7 day notice period. You will be required to give notice in writing, by telephone or at a branch or agency. Withdrawals must then be made within 14 days of the notice period becoming effective. Should you need immediate access to your funds, a withdrawal can be made subject to 7 days’ loss of interest on the amount withdrawn.
Subject to the conditions set out above, money can be paid out against a cheque from the start of the sixth business day following the day of deposit. Business day means a day other than a Saturday, Sunday or Bank Holiday. Funds are available for immediate withdrawal for all other types of deposit. Withdrawals have no effect on subscription limits.
Subject to ISA terms and conditions you may close your ISA at any time without loss of tax exemptions.
We will write to you within 14 days before your maturity to let you know that your Fixed Rate ISA is coming to an end and will automatically become a 7 Day Notice Cash ISA Account.
* Gross rate – the annual rate of interest to be paid on a savings account without any deduction being made in respect of personal
Income Tax liability.
** AER – stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added once a year.
*** Tax Free Savings – contractual rate of interest payable when the interest is exempt from income tax.
1. The account must be in your own name and not be held for the benefit of anyone else, including being used as security for a loan.
2. The Society will satisfy ourselves that anyone we delegate our functions and responsibilities to under the terms agreed is competent to carry them out.
3. An ISA begins from the date the subscription is made, provided there is a valid application in place. This means that applications may be accepted before the tax year in which subscriptions can be made.
4. You may decide not to proceed with the ISA contract within 14 calendar days (excluding public holidays) of the receipt by the Society of the application to open this ISA account. Any decision to close your account within this period should be notified to us in writing to our Head Office. In these circumstances we will return the full amount of your outstanding capital together with any interest earned with no additional charges incurred. You will then be free to subscribe to another ISA in the same tax year.
5. The application to open a 5 Year Fixed Rate Cash ISA account remains valid for subscriptionsmade in the next and consecutive years (where further subscriptions are allowed by the Society). However, where a break between subscriptions lasts for a whole tax year then a fresh application must be made before subscriptions recommence.
6. The Society will notify you if, by reason of any failure to satisfy the provisions of the ISA Regulations, your 5 Year Fixed Rate Cash ISA has, or will, become void.
7. At your request, your 5 Year Fixed Rate Cash ISA, with all rights and obligations,may be transferred in full or part to another ISA provider, however if you do so you will lose a sum equivalent to 365 days’ gross interest on the amount withdrawn. After the fixed rate term you will have 14 days to transfer your ISA to another ISA provider penalty free, thereafter transfers will be subject to 7 days notice period. You must make a Transfer Application to the new ISA manager and the Society will send the funds and accompanying information to the new ISA manager within 5 business days of receipt of both the transfer instructions and the consent notice from the new ISA manager. Business day means a day other than a Saturday, Sunday or Bank Holiday.
8. At your request, and within the number of days stipulated by you, all or part of the cash deposits held in your 5 Year Fixed Rate Cash ISA, together with any interest earned, shall be transferred or paid to you subject to the loss of 365 days’ interest during the fixed rate term. However, the period stipulated by you in your withdrawal instructions must not be less than 5 business days in order to allow the Society a reasonable period for practical implementation of your withdrawal request. We will normally process withdrawal instructions on the day we receive them but we guarantee that they will be processed within 5 business days. The Society will endeavour to conduct all transactions promptly and all correspondence is sent by first class post. In unforeseen circumstances, such as postal delays, the Society cannot be held responsible.
This is a Cash ISA. You must not subscribe more than £20,000 in total to a Cash ISA, a Stocks and Shares ISA, an Innovative Finance ISA or a Lifetime ISA in the same tax year.
You must not subscribe to another Cash ISA in the same tax year that you subscribe to this 5 Year Fixed Rate Cash ISA.
Where current year subscriptions are being transferred from a Cash ISA to a Stocks and Shares ISA, an Innovative Finance ISA or a Lifetime ISA, the current year subscriptions are transferred in whole (in the case of a transfer to a Lifetime ISA, subscriptions must not exceed the payment limit). This means that you are regarded as never having subscribed to the Cash ISA. Within the
overall subscription limit, therefore, you may subscribe to a Cash ISA later in the current year (with the same or a dierent ISA manager).
We ask for a deposit of at least £500. Because of this requirement the Hinckley & Rugby’s 5 Year Fixed Rate Cash ISA does not meet the minimum standards for the deposit-based stakeholder product.
The Financial Conduct Authority is a financial services regulator. It requires us, Hinckley & Rugby Building Society, to give you this important information to help you decide whether our 5 Year Fixed Rate Cash ISA 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.
Individual Savings Accounts (ISAs) were designed by the Government and were introduced in April 1999. All income and gains from ISA savings are exempt from UK income tax and capital gains tax in the hands of the saver. Further details on how ISAs work can be found on the Government website at gov.uk/individual-savings-accounts/
To open a Hinckley & Rugby 5 Year Fixed Rate Cash ISA Account you will need a minimum of £500. The maximum you can invest in a tax year is £20,000. If you do not put in the maximum allowed in any tax year then you will not be able to make up the balance in another tax year.
Savers must be 16 or over to open a Cash ISA and must be resident in the UK for tax purposes. For eligible savers aged 18 or over the annual ISA subscription limit in this tax year is £20,000. The limit for savers aged 16 and 17 (who can only subscribe to a Cash ISA) is £20,000. Up to £20,000 of the allowance can be saved in a Cash ISA with Hinckley & Rugby or split between a Cash ISA, a Stocks and Shares ISA (with another provider), an Innovative Finance ISA (with another provider) and a Lifetime ISA (with another provider). We do not offer Stocks and Shares ISAs, Innovative Finance ISAs or Lifetime ISAs. Alternatively, the full £20,000 can be invested in a Stocks and Shares ISA or an Innovative Finance ISA with another provider.
The Society only accepts subscriptions into one Cash ISA account in one tax year.
Interest is paid annually on 5 April or on closure.
- Transfers in
At the time of opening you may add existing Hinckley & Rugby ISA funds.
Hinckley & Rugby Building Society does not accept the transfer of ISAs from other savings organisations.
- Transfers Out
See additional Terms and Conditions No 7.
Deposit guarantee scheme
Hinckley & Rugby Building Society is covered by the Deposit Guarantee Scheme. Please ask for a copy of our Deposit Guarantee Scheme Information Leaflet for full details.
How to complain
Whilst we hope we can resolve any problems through our own complaints procedure, we are also a member of the Financial
Ombudsman Service, details of which will be provided on request from any of our branches or from Head Office. Details are also available on our website at hrbs.co.uk. We will respond to your initial complaint promptly (no later than 5 business days from receipt) and will endeavour to send a final response within 4 weeks of receipt of your complaint. If the complaint takes longer to investigate we will send a final response within 8 weeks of receipt of your complaint. In the unlikely event that we are unable to provide you with a final response within 8 weeks, we will write to you explaining why and advise you when you can expect a final response.
We need to confirm the identity of every customer who applies for an account with the Society. We do this to protect you against the risk of identity fraud and to comply with money laundering regulations.
We use an electronic verification system when you open a savings account. If this is successful, you will not need to do anything. However, in certain cases you will be asked to provide additional proof of identity (for example if you are not listed on the electoral roll or
you have recently moved house).
If you are required to provide additional identification, you must supply two items acceptable to the Society to verify your name and address. The Society will be unable to open your account until we have completed identification procedures.
If you think you will need to provide identification, please view this page for details of acceptable documentation or contact us to discuss.
IF YOU ARE UNDER 18
We will need to see either your birth certificate or passport, and a document confirming your address. This could be a bank statement or utility bill and can be in the name of a parent or guardian living at the same address if not available in your name. These documents need to be
originals, not photocopies, and they will be returned to you as quickly as possible.
Applying for an account
Complete the form below to request an application form which you can download and print.