Reward Cash ISA (Issue 3)
Up to 1.75% gross p.a* variable
(up to 0.75% gross p.a.*/AER** plus 1.00% bonus)
Our Reward Savings accounts offer you immediate access to your savings and a bonus on your interest for every three months you don't touch your money. You never know when you might need your savings and this account lets you have the best of both worlds; immediate access to your money if you need it, and a bonus if you don't.
Plus, this is not an introductory offer that runs out.
The bonus rolls every three months from the date you open your account. So our Reward Savings accounts keep on rewarding you.
The Reward Cash ISA is very similar to the Reward Saver, but with the added advantage of your savings being tax free and the interest tiers being lower than the Reward Saver.
| Summary Box Key Product Information for our Savings Accounts |
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|---|---|---|---|---|---|---|---|---|---|
| Account name | Reward Cash ISA (Issue 3) | ||||||||
| Interest rates (AERs) |
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| Tax status | All interest earned on this account is tax free | ||||||||
| Conditions for bonus payment | Bonus is paid every three months. See section What will stop me earning my bonus interest for penalties for withdrawal. | ||||||||
| Withdrawal arrangements | No restrictions on withdrawals | ||||||||
| Access | Access is via post, or one of our branches | ||||||||
About Reward Savings Accounts
How does the bonus work?
Our reward savings accounts offer immediate access to your money. If you don't touch your money for three months from account opening we pay you a bonus of 1.00% p.a./AER. This is a variable interest rate. This rolls on for every three months you have the product. This is not an introductory bonus that disappears, but one that continues for as long as the account is open.
Am I allowed to withdraw money?
Yes, all our reward saver accounts are immediate access. If you need to withdraw some money, you would lose the bonus interest for the current three month period. Once that is complete and a new three month period begins you would again be eligible to earn bonus interest.
For Example: Shirley opens a Reward Saver account in June with an opening balance of £2000. She makes no withdrawals for three months and at the end of August, Shirley receives her base and bonus interest. Her new three month bonus period begins again in September. Shirley withdraws £500 in October. At the end of November (the end of three months) she receives her base interest but no bonus interest as she made a withdrawal in that three month period. In December she starts a new three month bonus period.
What will stop me earning my bonus interest?
You will not receive a bonus if you make a withdrawal or transfer within a three month period. If you close your account you will not receive a bonus for the last three month period of the account being open.
How is my interest paid?
Base and bonus interest is paid upon completion of each three month period of holding the account. We will add this money to your account.
Some important things you need to know about the Reward Cash ISA
How much can I save in my Reward Cash ISA?
You can only subscribe to one Cash ISA per tax year. Subscriptions only count towards the subscription limits for the tax year in which they are received by ISA managers. Where an investor does not subscribe to the maximum in any tax year, the balance cannot be made up in any other tax year. Limits for ISAs are changing - from 6th April 2010, all ISA investors qualify for the new cash ISA subscription limit of £5,100. Once a customer reaches the Cash ISA limit for the tax year (£5100), they may make no further subscriptions regardless of withdrawals.
You can transfer in previous ISA year subscriptions into your Reward Cash ISA.
If I withdraw money from my ISA can I add to it again to reach my maximum?
Once you reach your maximum ISA investment amount, no further deposits can be made regardless of the amount of withdrawals.
Can I transfer my Reward Cash ISA to another one?
Yes, you can transfer your current ISA year subscription in whole and previous subscriptions in whole or part at any time by giving us notice in writing.
Can I have more than one Cash ISA at a time?
Yes, but you can only open one new Cash ISA per tax year. Unless you transfer your Cash ISA to a stocks and shares ISA, in which case, you can replace this and open a new Cash ISA in the same tax year.
What else do I need to know to open an account?
The minimum opening balance of a Reward Cash ISA account is £1000. To open the Reward Cash ISA you need to be aged 16 years or over. The maximum balance is £1,000,000. Please make sure you read Your ISA Savings Terms and Conditions.
| Minimum investment | Investment amount | Gross p.a. / aer % * | Net | Bonus |
| £1,000 | 0.50 | - | 1.00% | |
| £20,000 + | 0.75 | - | 1.00% |
current rates valid from 1 June 2010
| Minimum investment | Investment amount | Gross p.a. / aer % * | Net | Bonus |
| £1,000 | 0.50 | - | 1.00% | |
| £20,000 + | 0.75 | - | 1.00% |
previous rates not applicable
* The gross rate is the rate before deducting tax at the rate applicable to savings income.
** The annual equivalent rate (AER) is a notional rate which illustrates the contractual rate (excluding any bonus interest payable) as if paid and compounded on an annual basis.
Notes
- You will need your National Insurance number in order to open this account
- Once the subscription limit has been reached, no further deposits can be made, regardless of the amount of withdrawals
- Please make sure you read Your ISA Savings Terms and Conditions before applying for this account
Interested in a Stocks and Shares ISA and other options?
Ask in branch to talk to one of our Independent Financial Advisers or call Saffron IFA on 0845 600 7432
