At the start of each month we will set the interest rate that will apply throughout the year to all Fixed Rate Anniversary ISAs opened during that month. A new fixed rate of interest will be set at the start of the following month. Of course, interest rates available in previous or subsequent months could be higher or lower than when your ISA is opened due to changing economic conditions.
Interest is calculated on a daily basis and will be added to your account on maturity. Alternatively you can choose to take a monthly income from your account. Monthly interest is paid on the last day of each month and must be paid to another YBS account, a bank or another building society account. Therefore, to maximise your tax-free savings you should choose to have annual interest added to your account. Monthly interest is available as some investors take an income from their savings and want their ISA to form part of their investment portfolio.
You can save as little as £100 or up to £3,600/£5,100 in the 2008/2009 tax year depending on your age. See ISAs explained for details.
You can make additional deposits during your anniversary month, e.g. if you opened your ISA on 6 April 2009, you can add more money up to 30 April 2009 subject to the annual ISA limit.
A new issue of the ISA is introduced each month. When you have opened your ISA, we will give you a passbook showing the amount you have invested.
The anniversary month is the same month as the initial investment was made, one year later.
Due to the tax year running from 6 April to 5 April the following year, the above does not apply to investments between 1 March to 30 April.
Invest between 1 March to 5 April and the term will run from date of investment to 28/29 February the following year, annual interest is also paid on this date. The anniversary period will run from 1 March to 5 April the following year.
Invest between 6 April to 30 April and the term will run from date of investment to 5 April the following year, annual interest is also paid on this date. Monthly interest will be paid on the last day of each month, interest earned between 1 and 5 April will be included in the monthly interest payment for April or on closure if applicable. The anniversary period will run from 1 March to 5 April the following year.
If you open and pay money into Fixed Rate Anniversary ISA in any tax year, you will not be able to open another Cash ISA in that tax year. You can, however, take out a Stocks and Shares ISA in that tax year.
Also, if you have taken out a Fixed Rate Anniversary ISA in one tax year and wish to pay money into it the following tax year, you will not be able to open another Cash ISA in that tax year.
See ISAs explained for more details.
At the end of the fixed term you can choose to:
You will be able to access or transfer your money during the anniversary month without loss of interest. You may access your ISA for withdrawals, transfers or closure during the rest of the term, but there will be a 90-day loss of interest on the amount withdrawn.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).