Lifestyle Reserve
Effective from 23rd July 2008.
Up to 6.15% Gross p.a.*/AER Variable
Our Lifestyle Reserve account offers a competitive rate of interest and up to 4 withdrawals per financial year without notice or loss of interest. This account offers a range of annual, monthly and deferred interest payment dates, which is ideal for people looking to plan their tax affairs.
The Lifestyle Reserve account offers a tiered variable rate of interest. Additional deposits are accepted and higher balances are rewarded with higher rates of interest.
What interest rate will I receive?
| Balance | Gross P.A.* | AER* |
|---|---|---|
| Annual Interest | ||
| £100,000 - £1,000,000 | 6.15% | 6.15% |
| £25,000 - £99,999.99 | 6.10% | 6.10% |
| £5,000+ - £24,999.99 | 6.05% | 6.05% |
| Monthly Interest | ||
| £100,000 - £1,000,000 | 5.95% | 6.11% |
| £25,000 - £99,999.99 | 5.90% | 6.06% |
| £5,000+ - £24,999.99 | 5.85% | 6.01% |
- Easy access – up to 4 withdrawals per financial year (1 May until 30 April)
- Further deposits permitted
- Interest paid annually, on 1 January, 30 April, or Monthly†
- Minimum investment £5,000
- Interest calculated on a daily basis from the day following receipt
- Maximum investment £1,000,000 per customer
- The payment of interest may be deferred until the account is closed
- Minimum withdrawal of £1,000 per withdrawal
When will the interest be paid?
Interest can be paid annually on 1 January or 30 April or you can choose to have interest paid monthly. Monthly interest is paid on the first working day of the following month. Interest can be capitalised or paid away or deferred until the account is closed.
What access does the account offer?
The account offers up to four withdrawals per financial year, from 1 May to 30 April, without notice or loss of interest subject to a minimum withdrawal of £1,000. Further withdrawals, including closure, will incur an administration charge of £50.
How can I apply for an account?
- Please ensure you have read and understood all of the above account features and our terms & conditions.
- Complete our online application form, print it off and post it to us along with a cheque or direct bank transfer.
- Cheques should be made payable to: Scarborough Channel Islands Limited/Your Name
- Alternatively if you do not wish to apply through our online form you may request an account application pack.
If the balance on your account falls below the minimum investment, the interest rate will be 0.50% gross p.a./AER*, your account may be closed, unless stated otherwise in the product description.
*Interest is paid gross. The gross rate is the contractual rate of interest payable before the payment of income tax. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year. Where interest is paid monthly, the AER is the rate which would be achieved if the interest was added to the account each month.
†Monthly interest paid on the first working day of the following month. Compounded or transferred monthly interest will be credited on the last day of the current month. Monthly interest can be compounded into the account or paid to your UK or Channel Islands bank account or another Scarborough Channel Islands account.
It is your responsibility to advise the appropriate tax authorities of any interest received. All rates are variable except the Fixed Interest Bonds. If no interest payment date is given on the application form, interest will be paid on 1 January.
The European Union Savings Tax Directive, effective 1 July 2005, applies to savings income earned on your account if you are a resident of an EU member state. You must elect how we are to deal with savings income from your account in the application form. Please note that should you fail to indicate your preference, we will deduct retention tax from interest earned on your account after 1 July 2005, in accordance with the Directive.
‡Deferred interest is calculated on a daily basis and is paid when the account is closed. Deferred interest does not, therefore, offer the potential benefit of interest compounding on a monthly or annual basis. It is your responsibility to make your own decision as to the suitability of this product and the deferred interest option, particularly in regard your tax situation. It is therefore important that you seek your own independent advice as you feel is appropriate. It is also your responsibility to declare the interest earned to the appropriate tax authority. If no interest payment date is given on the application form, interest will be paid on 1 January in each year.