If you prefer a guaranteed return over a set period of time, Fixed Rate Anniversary ISA is a great choice, offering a fixed rate of interest over a fixed term, tax-free. When you invest over the full term, you'll know exactly how much interest you'll earn.
The month in which you open your account becomes your 'anniversary month' each year. During this month, you can add to your investment, make withdrawals, close or transfer your account without losing any interest. You can't pay in any more money at any other time.
At the start of the anniversary month, your money is automatically invested into a new issue with a new interest rate that is fixed for a further 12 months. For example, if you opened your account in May 2010, your anniversary month would be May 2011, May 2012 ... and so on, until your account is closed.
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 £5,100 in the 2010/2011 tax year. See ISAs explained for details.
You can make additional deposits during your anniversary month, e.g. if you opened your ISA on 6 April 2010, you can add more money up to 30 April 2010 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. Please see below for further details on term dates, anniversary months and interest payment dates. Please note, March & April anniversary & term dates differ slightly to dates in other months, due to the dates of the tax year.
| Available From | Last date of investment term |
Annual Interest Paid | Anniversary Period | |
|---|---|---|---|---|
| January | 01 Jan – 31 Jan | 31 Dec | 31 Dec | 01 Jan – 31 Jan |
| February | 01 Feb – 28 Feb | 31 Jan | 31 Jan following year | 01 Feb – 28 Feb |
| March | 01 Mar – 05 Apr | 28 Feb | 28 Feb following year | 01 Mar – 05 Apr |
| April | 06 Apr – 30 Apr | 05 Apr | 05 Apr following year | 06 Apr – 30 Apr |
| May | 01 May – 31 May | 30 Apr | 30 Apr following year | 01 May – 31 May |
| June | 01 Jun – 30 Jun | 31 May | 31 May following year | 01 Jun – 30 Jun |
| July | 01 Jul – 31 Jul | 30 Jun | 30 Jun following year | 01 Jul – 31 Jul |
| August | 01 Aug – 31 Aug | 31 Jul | 31 Jul following year | 01 Aug – 31 Aug |
| September | 01 Sep – 30 Sep | 31 Aug | 31 Aug following year | 01 Sep – 30 Sep |
| October | 01 Oct – 31 Oct | 30 Sep | 30 Sep following year | 01 Oct – 31 Oct |
| November | 01 Nov – 30 Nov | 31 Oct | 31 Oct following year | 01 Nov – 30 Nov |
| December | 01 Dec – 31 Dec | 30 Nov | 30 Nov following year | 01 Dec – 31 Dec |
Monthly interest is paid on the last day of each month.
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.
| Account Name | Fixed Rate Anniversary ISA |
|---|---|
| Interest rates (AERs) | One year fixed rate paid annually or monthly, view interest rate |
| Tax Status | |
| Conditions for bonus payment | N/A |
| Withdrawal arrangements | Unlimited withdrawals and closure during anniversary month permitted without loss of interest. Any other withdrawal or closure subject to 90 days loss of interest on the amount withdrawn, including transfers to another provider.Subject to daily withdrawal limits |
| Access | Branch or Agency |
Whether you can benefit from gross, net or tax free interest is dependent on your own personal circumstances and tax status and so may be subject to change in the future.
Effective 1 July 2010
|
Balance £ |
Interest Type |
Tax-free Rate P.A. % |
Net Rate P.A. % |
AER % |
|---|---|---|---|---|
|
£100 and above |
Annual Interest |
2.00% |
- |
2.00% |
|
£100 and above |
Monthly Interest |
1.98% |
- |
2.00% |
AER stands for Annual Equivalent Rate and shows you what the interest rate would be if interest was paid and added each year. This will enable you to compare more easily the return you can expect from your savings over time.
Tax-free means that interest is not subject to income tax
This savings account can be operated in various ways but must be opened at a branch or via the post.
Note: When applying for a YBS account you will need to verify your identity and address. Check our Verifying your Identity section for more details of what you may need to take with you.
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).
