®
Special considerations when applying for a mini cash ISA
The Financial Services Authority is the independent financial services regulator. It requires us, Newcastle Building Society, to give you this important information to help you to decide whether our mini cash ISA is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.
This section and Section B of the Terms and Conditions highlight the additional information which you should consider when applying for a mini cash ISA version of the account.
The Society subscribes to the HM Revenue and Customs ‘Not in Writing’ scheme. As part of the scheme we are required to confirm your ISA declaration.
| Available | From 11 February to 8 April 2008 |
| Minimum Investment | £500 |
| Maximum Investment | £3,000 in any tax year
|
| Access | Partial withdrawals are not permitted, however you can make a full withdrawal subject to the payment of an Exit Fee.
|
| Interest Paid | On maturity.
|
The ISA investments will be, and must remain in, the beneficial ownership of the investor and must not be used as security for a loan. Your Account can be cancelled within 14 calendar days of opening without penalty or affecting your annual ISA allowance.
How can I work out an Exit Fee?
An Exit Fee is required to cover the charges incurred by the Society when cancelling the market transactions required when linking the return of the Account to the Indices. The example below shows how the Exit Fee will be calculated.
Initial Investment |
£3,000 |
Withdrawal |
£3,000 |
Bank of Engalnd Base Rate* |
5.50% |
£3,000 X (5.50% + 1.75%) = |
£217.50 |
£217.50 divided by 365 (days per year) = |
£0.60 |
Start Tracking Date |
8 April 2008 |
Maturity Date |
8 April 2013 |
Number of days in term |
1,826 |
Assume withdrawal fee made on 8 April 2008 |
|
Withdrawal fee £0.60 x 1826 = |
£1095.60 |
Plus Admin Fee |
£50.00 |
TOTAL COST OF WITHDRAWAL: |
£1,145.60 |
If the Bank of England Base Rate was 6.00% the total cost of the Withdrawal would be: |
£1,218.64 |
* Rates are correct as at the time of going to print. The Bank of England Base Rate is subject to change and we cannot predict in advance what this will be over the term. We will notify you in writing the amount of the Exit Fee upon request. |
|
What happens on the Maturity Date?
The ISA will automatically transfer to our Nova ISA and Nova ISA Terms & Conditions will apply. Details of this no notice, variable rate Account are available upon request.
Transferring your ISA
You can also take advantage of previous years ISA subscriptions by transferring your ISA(s) from other ISA providers to the Account.
An ISA Transfer Form will be provided with your Application Form, which will allow you to give us the information we require. You must transfer all of the money you put into your ISA in previous years. We will not accept partial ISA transfers.
Once we have received your request we will write to your existing ISA provider to request your ISA funds. Should your existing ISA provider have any queries, or should you need to incur any charges to transfer, you will need to contact them directly to resolve these issues.
Your ISA will then be transferred from your existing provider to the Newcastle. Your ISA MUST be transferred directly between your existing provider and the Newcastle. You cannot close your existing ISA yourself and then open an Account with funds from previous tax years.
What’s the difference between mini and maxi ISAs?
With an ISA you can invest in cash or equities or any combination of the two. There are two types of ISA:
A maxi ISA can include cash, stocks and shares in a single ISA with one Manager. A maxi ISA enables you to invest the maximum amount allowed each tax year.
Mini ISAs mean you can have separate ISAs, with different Managers, for cash and stocks and shares.
The Newcastle Building Society is an approved ISA Manager and we can offer you mini cash ISAs. We can also refer you to Newcastle Financial Services Limited (NFSL) who can advise on a range of ISA options including equity ISAs.
You do not have to hold both elements. You can invest in either mini ISAs or a maxi ISA, but you cannot open or invest in both in any one tax year. This means that if you decide to take out, or have already taken out, a mini cash ISA this tax year, you cannot take out a maxi ISA until the next tax year.
This Account does not satisfy the minimum standards for a Deposit Based Stakeholder Account.
Principal Office: Portland House, New Bridge Street, Newcastle upon Tyne NE1 8AL. Telephone: 0845 606 5522. Newcastle Building Society is authorised and regulated by the Financial Services Authority (FSA) and is entered in the FSA’s register under number 156058.