Cash ISA

Terms & Conditions

These terms and conditions (as amended from time to time) apply to the Deposit Account (‘the account’) which the account holder(s) (‘you’) holds with Scottish Widows Bank plc (‘us’).

1. Deposit Account

The initial deposit and ongoing balance requires to be at least £10. Maximum investment allowed in the current tax year is £3,600.

2. Payment of Interest

Interest Rates

Variable interest rates apply to the account on a tiered basis. Rates may be varied for competitive or other reasons, for example as a result of regulatory changes or changed market conditions. Full details are available on our pre-recorded 24 hour interest information service (telephone number 0870 845 0829).

Interest Calculation (including bonus)

Interest is calculated on a daily basis from the day funds are cleared. This means that you will earn interest after the third business day in respect of cheques received for credit of the account. For maturing Scottish Widows Group product monies, CHAPS* transfers and BACS payments you will earn interest from the day funds are credited to your account.

*Please contact us for exact requirements before you arrange to send money by CHAPS.

Taxation of Interest (including bonus)

Interest is paid payable gross as long as Inland Revenue requirements are met. The favourable tax treatment of a cash ISA may not be maintained by the government in future.

Interest Payments

Interest is applied twice yearly on 1 April and 1 October.

Settlement of Interest

Interest may be credited to this account, a different account with us in the same name or in an individual name who is party to the account, or (providing the balance is for a minimum of £2,500) to any UK bank or building society account in accordance with the pre-advised account details held on file. Where interest is paid to another UK bank or building society, you should allow at least two business days after the interest payment date for the interest to reach the account.

3. Interest Rate Changes

If we change the interest rate on your account we will tell you of this personally by letter within 30 days.

4. Deposits

We will require at least two business days’ notice from you if you request us to transfer funds to your account by BACS Direct Debit. Additional deposits must be for a minimum of £10. Cheques require to be drawn on the account holder’s existing pre-advised account. For your protection we recommend that personal cheques issued by the account holder are made payable to Scottish Widows Bank <Account Holder’s Name>. Third party cheques are not permitted. Inward transfer of credits through the bank’s money transmission system, eg. bank giro credit, standing order or dividend mandate is not possible as there can be identification difficulties and delays outwith our control. Payments made in this way may be returned automatically and may incur a charge (refer to section 13 below).

Cheques required to be drawn from an account you are named on. Building Society cheques must be verified to confirm they are from an account held in your name. Please arrange for the issuing branch to stamp and sign the reverse of the cheque and add your name, sort-code, account number and roll number (if applicable).

5. Withdrawals

The minimum withdrawal of capital which you can make is £10. Withdrawals may not be made against the proceeds of cheques or BACS until at least the eighth day commencing from the date the amount is credited. Withdrawals will be remitted direct to your UK bank or building society account in accordance with the details pre-advised to us. For your protection, no payments in favour of third parties will be permitted. Provided two business days’ notice is given, transfers from accounts will be made free of charge.

6. Telephone Banking

We may monitor or record telephone calls with you in order to check we have carried out your instructions correctly and to help improve our quality of service. We reserve the right to request additional account information as is reasonable to satisfy ourselves that the telephone caller is in fact the account holder(s). Please note that transactions can only be carried out when we are fully satisfied that identification requirements are met.

7. Internet Banking

Separate Terms and Conditions exist for our Internet Banking service. If you register for Internet Banking, the first time you log in you will need to accept our Terms and Conditions before you can access your Scottish Widows Bank account(s) online.

8. Security

On opening an account with us, you will be allocated an account number. Its purpose is to assist us in locating your account details in order to deal efficiently with your requirements. It is not a personal security code but should be quoted in all correspondence and in telephone enquiries. The security details you provide on your application form will be held on file for your protection. Always take reasonable steps to keep your passwords and other security information secret at all times.

If you register for Internet Banking, please familiarise yourself with the security information outlined in the Internet Banking Terms and Conditions.

9. Amendments

Requests to amend account details should be made in writing and be signed by you in accordance with the prevailing instructions. For your convenience standard amendment forms are available on telephone request to the customer services line. Any notice of change of name must be accompanied by appropriate evidence.

10. Confirmations

Confirmation will be issued for transactions only over £250 for both deposits and withdrawals.

11. Statements

Statements will be produced twice yearly on 6 April and 6 October.

Should additional statements be requested this will be regarded as an exceptional service and we reserve the right to apply a charge (refer to section 13 below).

12. Transaction Processing

Banking instructions received by 3pm on any business day will be processed that day. Instructions received at any other time will be processed the following business day. The term ‘business day’ excludes Saturdays, Sundays and Bank Holidays.

13. Exceptional Service

We may at our discretion charge for services we regard as non-standard. The scale of any future charge will be advised to you prior to any service being provided.

14. Death of Account Holder

The exemptions from tax shall terminate immediately on the death of the account holder. On receipt of written notice by us of the death of the account holder we will pay to the account holder’s legal personal representatives (upon presentation of such evidence of their authority as we may require) all the investment together with any interest accrued without notice or penalty.

15. Right to Cancel

If you are not happy about your choice of savings or investment account(s), please write to us within 14 days of opening your account to Scottish Widows Bank plc, PO Box 12757, 67 Morrison Street, Edinburgh, EH3 8YJ. We will help you switch accounts or we will give all your money back with interest. We will ignore any notice period.

16. Void Accounts

We shall notify the account holder if by reason of any failure to satisfy the provisions of the ISA Regulations, the account has or shall become void.

17. Notice to Close Account

Scottish Widows Bank undertakes not to close your account without giving you 30 days notice unless there are exceptional circumstances such as fraud or threatening or abusive behaviour towards staff.

18. Transferring an ISA

At your request, and within 30 days, an ISA or part of an ISA, with all rights and obligations of the parties to it, may be transferred to another ISA Manager.

19. Assignment

We may appoint another company (which shall be a member of our own group of companies and approved to act as an Account Manager under the ISA Regulations) as Account Manager in our place and may transfer to that company all relevant benefits, duties and obligations arising under these terms and conditions. We shall ensure they possess the relevant competencies as Account Managers. You many not, however, assign any of the rights, benefits, duties or obligations under these terms and conditions. You will be, and must remain, the beneficial owner of the account and must not use the account as security for a loan.

20. Variation

Any variation to these terms and conditions will be notified to the customers at least 30 days prior to making the change. This will normally be by advertisement in at least two national newspapers or by personal letter.

21. Contracts (Rights of Third Parties) Act 1999

This contract is between the Account Holder and Scottish Widows Bank plc. The terms of the Contracts (Rights of Third Parties) Act 1999 and any other legal third party rights are specifically excluded. This means that only the parties to the contract (or their legal successor(s), assignee(s) or other security holders) may have contractual rights.

22. Subscriptions

You are able to transfer money saved in the current tax year in cash ISA into a stocks & shares ISA. Such transfers must be the whole amount saved in that tax year in that cash ISA up to the day of the transfer. Once transferred, the money is treated as if it had been invested directly into a stocks and shares ISA in that tax year. If you have not subscribed to your Scottish Widows Bank cash ISA in a given tax year you cannot lodge further funds to this ISA until a fresh application form is completed.

23. Law

For legal purposes the law of England and Wales, Scotland or Northern Ireland will apply. This will depend on where you live when you open your account.