Individual Savings Accounts

Barnsley Building Society offers two types of ISA, both of which are detailed in this leaflet under the titles of Mini Cash ISA and TESSA Only ISA. Both offer tax-free savings within certain limits, which are explained clearly within each account section.

Each account type is discussed in detail under different sections specific to the operating of the accounts, with terms and conditions of the account type listed immediately after. The general terms and conditions of the account follow towards the back of the leaflet.

ISAs

Barnsley ISAs have been developed under Government guidelines to provide tax-free savings benefits.

ISAs are not term investments, meaning you do not have to make regular deposits for a specific number of years, nor do you have to leave your savings for a specific time frame. You do not have to maintain your commitment to your ISA and are free to choose which ISA provider offers the best solution for you.

An ISA is made up of one or more of the following components:

• Cash
• Stocks and Shares

and the ISA provider has the ability to choose which of the three categories of ISA they choose to offer.

The Barnsley chooses to offer Mini Cash and TESSA Only ISA's.

Mini ISA

This account type must be made of a single specified component. By investing in a Mini ISA, the only other ISA accounts which may be subscribed to during that tax year would be a TESSA Only or another Mini account made up of a different component.

TESSA Only ISA

This account type can only be made up of a cash component accepting matured capital from previous Tax Exempt Special Savings Accounts. This account type can accept annual interest generated from the initial TESSA deposit but interest resulting from the matured TESSA capital, cannot be deposited into this ISA and must be deposited into another account.

Maxi ISA

This account type must be made up of a stocks and shares component (with or without the cash or insurance component). By investing in a Maxi account, the only other account that may be subscribed to in that tax year is a TESSA Only ISA.

How to open your ISA Account/s

Accounts can be opened at any Society branch or by post.

As part of the account opening procedure, we will carry out electronic verification of your personal identity and address. If this search proves unsuccessful, you will be asked to provide documentary evidence, such as a passport or photo driving licence. Details of the types of documents we are able to accept as evidence can be found in the Customer Guide leaflet, available at branch offices and also on our web site. As you will be opening an account that is not subect to tax, the account opening has to meet with Inland Revenue regulations and you will also be required to provide your national insurance number.

If you are an existing Society member, you may still be asked to provide identification as shown above, if the details we hold regarding your accounts are not recent.

All request for identification conform to regulations which protect you and guard against fraudulent transactions on your account.

The Society is happy to accept TESSA Only ISA account transfers and in these cases all we need are the details of the ISA provider and the account number, plus your written instructions to request the transfer on your behalf. We will handle the rest of the transaction.

Interest Payments

Interest rates on these accounts are variable and can fluctuate over a period.

All Falcon ISAs will be credited with interest annually on 31st December. You may withdraw funds at any time without losing the tax-free status available with the accounts.

Current interest rates will be supplied to you on request and are on display at all branch offices and on our web site

ISA Account Terms and Conditions

Under some headings the terms and conditions differ. Where there is a difference, each section will be clearly marked with the name of the account it is specific to. Please ensure you read the heading that relates to the ISA you are interested in.

1. Eligibility: You may open a Mini Cash ISA account if you are aged 16 years or over. To open a TESSA Only ISA account, you must have held this type of an account with another financial services provider. You must be resident in the UK and subject to UK tax. As ISA stands for Individual Savings Account, accounts cannot be opened for anyone else and joint accounts are not permitted.
2. Investments
   Mini Cash: Each account is subject to a minimum initial investment of £100 and additional sums of any amount may be invested at any time up to the account limit each year.
   TESSA only: The Society will accept transfers in to the Falcon TESSA ISA account from other financial institutions. The minimum investment is £500.
3. Cooling Off Period: If after careful consideration, you decide that you are not happy with your choice of savings or investment account(s) and you bring this to our attention within the 14 days of your initial receipt, we will help you to either switch accounts or return your money with any interest earned over that period*. We will ignore any notice periods and additional charges in these cases.
   *Please note: Cheques paid within the 14 day period will have to clear before a refund can be given.
4. Withdrawals
   Mini Cash: This account offers instant access and withdrawals may be made immediately without offering notice.
   TESSA Only: These are available with 60 days written notice with interest paid in full or, payable on demand with the loss of 60 days interest on the amount withdrawn. For notice withdrawals, a period of 7 days grace is allowed at the end of each notice period, after which, notice will have to be resubmitted if penalty interest is to be avoided.
   For both accounts: For both accounts The Society allows withdrawals up to £500 cash, orup to the account balance by cheque, to be available imediately at any branch office. For larger amounts, prior notice may be required.
   Account investments, interests, dividends, rights or other proceeds in respect of such investments or any cash, shall be transferred or paid to the account investor within such time as stipulated in their withdrawal instructions.
5. Interest: is variable and calculated on a daily basis, including the day of receipt but not the day of withdrawal and added to the account each year on 31st December. Interest can be paid into another account with the Society.
   Additional Interest:
   Mini Cash : becomes payable when the account balance reaches £500, and £1,000. Conversely, when an account balance falls below these levels, the interest rate payable will reduce accordingly.
   TESSA Only : becomes payable when the account balance reaches £5,000 and £9,000. Conversely, when an account balance falls below these levels, the interest rate payable will reduce accordingly.
   Penalty Interest applicable to TESSA Only ISA
   TESSA Only : This is debited to the account at the current interest rate payable in accordance with the balance held immediately prior to the withdrawal. The Society reserves the right to deduct any outstanding penalty/debit interest from the capital balance at the next interest date or at the date of closure. Penalty/debit interest arises when the amount of penalty/debit charged exceeds the amount of credit interest earned.
6. Interest Rates: We reserve the right to amend interest rates at our discretion using one or more of the following methods:
   a. Advertisements in the Yorkshire Post and Derbyshire Times Newspapers
   b. Notice in Branch
   c. Individual notice to investors
   d. Internet - Society Website.
7. Closure: Should your account balance fall below the minimum amount of £100 for Mini Cash & £500 for Tessa Only, the account will be closed and the balance transferred to a Falcon Instant account, where interest will be payable net of lower rate income tax.
8. Transfers: When instructed by the account investor and within such a time as stipulated by them in the transfer instructions:-
   i. an account, with all rights and obligations of the parties to it, or
   ii. such parts thereof may be agreed between the investor and the account manager,
   shall be transferred to another account manager subject to and in accordance with regulation 21 of the 1998 ISA regulations.
   If your ISA is held with another provider you may wish to transfer your account into the Society. On receipt of your instructions, we will arrange the transfer on your behalf. All transfers to and from the Society are dealt with at our Head Office.
9. ISA Regulations: ISAs may appear suitable for you as the value of tax benefits depends upon your personal financial circumstances.
   ISA investments will be, and must remain in, the beneficial ownership of the investor and must not be used as security for a loan.
   The ISA manager will satisfy himself that any person to whom he delegates any of him functions or responsibilities under the terms agreed with the investor is competent to carry out those functions and responsibilities.
   The ISA manager must notify the investor if, by reason of any failure to satisfy the provisions of the ISA regulations, an ISA has, or will, become void.
10. Amendments: We reserve the right to amend Terms & Conditions of issue at our discretion. Should the change be to your disadvantage, we will tell you about it personally, at least 30 days before we make the change.
    These Terms & Conditions are subject to change in response to the Government's statutory requirements regarding ISAs.

September 2006