Fixed Bond

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At a glance

    • Up to 1.75% gross/AER fixed on balances of £2,000+ for the 3 year term
    • Know what to expect with a fixed rate
    • Interest can be paid monthly or annually
    • Start saving from £2,000
    • You have 10 days from account opening to fund the account
    • No withdrawals or additional deposits allowed and no cancellation period once the account has been funded

About the Fixed Bond account

With our Fixed Bonds, put your money away for fixed terms from 1 year to 3 years and be sure of the return on your money.

Your interest rate is fixed for the term of the account. You cannot make any further deposits or withdrawals after the account is opened and there is no cancellation period once the account has been funded.

You can hold more than one Fixed Bond at any time, and you’re able to check your account balance via Internet Banking or by popping into your local branch.

1 Year Fixed Bond

Amount InvestedAnnual Option Monthly Option
AER/Gross % 
Net % 
AER % Gross % 
Net % 
£50,000+ 1.50 1.20 1.50 1.49 1.19
£2,000 to £49,999 1.45 1.16 1.45 1.44 1.15

These interest rates are correct as of 30/09/2014.

2 Year Fixed Bond

Amount Invested Annual Option Monthly Option
AER/Gross % 
Net % 
AER % Gross % 
Net % 
£50,000+ 1.75 1.40 1.75 1.74 1.39
£2,000 to £49,999 1.70 1.36 1.70 1.69 1.35

These interest rates are correct as of 30/09/2014.

3 Year Fixed Bond

Balance  Annual Interest
Monthly Interest
AER/Gross % 
Net % 
AER % Gross% 
Net % 
£50,000+ 1.75 1.40 1.75 1.74 1.39
£2,000 to £49,999 1.75 1.40 1.75 1.74 1.39

These interest rates are correct as of 10/12/2013.

Interest rates are fixed for the term of the deposit.

These rates are subject to availability and can be withdrawn at any time without notice. See the glossary section further down the page for explanation of terms.

How the Fixed Bond works

  • At least 30 days before the end of the term, we will write to you asking for instructions about what you would like us to do with your Fixed Bond account.
  • At maturity you can choose to pay your savings into another account or into another fixed bond account. If we do not hear from you your account will automatically be transferred to a Matured Funds Account.
  • The interest rate is fixed for the term of the account.
  • You can have your interest paid monthly, to boost your income, or annually to boost your savings.
  • You can have your interest paid into a Lloyds Bank current account or an eligible savings account.
  • Once opened no withdrawals are allowed.
  • Deposits must be received within 10 working days of opening your account.
  • You can hold more than one Fixed Bond at any time.
  • You can check your account balance through your local branch, telephone banking, but not Internet banking.

Account name Fixed Bonds
Interest rates (AERs) Interest fixed for the term of account chosen.
Available for One year, two years or three years. Interest paid monthly or annually, depending on choice at account opening.

Fixed Bond interest rates
Tax status Interest will be paid net after the deduction of income tax (currently 20%).

If your non savings income is less than your personal allowance you may qualify for the 10% savings tax rate, we will still pay your interest net of tax (with income tax taken off - currently 20%). If you think that this may apply to you, you should complete HMRC form R40, available on HMRC website or your tax office.

If you are a UK resident non tax payer you can register your account(s) to receive credit interest paid gross in branch or by completing an HMRC R85 form. If you are completing the R85 form you will need to complete one form for each account you hold. You can download the R85 form at www.hmrc.gov.uk.
Conditions for bonus repayment Not applicable.
Withdrawal arrangements You won’t be able to withdraw money or close your account before the end of the agreed term. Access only at the end of the agreed term. We’ll write to you before your account matures to ask what you’d like us to do with your money.
Access Phone and branch

You can open a Fixed Bond account with a lump sum of £2,000 or more.

To set up an account you'll need to be:

  • a UK resident
  • over 16 years of age

Apply by phone

Call us on 0845 730 1400.

(Monday-Friday 7am-10pm and Saturday-Sunday 8am-6pm).

Apply in branch

If you open an account in a branch, you’ll need to take proof of identity with you.

Find a branch

Fixed Bond account terms and conditions

Our agreement with you is made up of general conditions (contained in the 
Personal banking terms and conditions leaflet) and additional conditions. These include the conditions below and the Banking Charges guide. If there is any overlap or conflict between the additional conditions and the Personal Banking terms and conditions, the additional conditions apply.

The Fixed Bond account conditions apply from the opening of your account until the end of the fixed term which you agree with us on account opening.

The Fixed Bond Account (the Account) is a fixed term, fixed interest rate account. It is a restricted savings account because there is a limited period after account opening when you can make payments into the Account and withdrawals are not allowed until the end of the term.

1. ELIGIBILITY
1.1 To have the Account you must be at least 16 years old and a UK resident.
1.2 Your Account can be held in your sole name or held jointly.
1.3 You can open the Account in branch or over the telephone.

2. DEPOSITS AND WITHDRAWALS
2.1 The minimum deposit is £2,000, and the maximum deposit is £1,000,000.
2.2 We must receive your opening deposit within ten working days of you opening the Account (including the day of opening). After that, additional deposits will not be accepted.
2.3 You can pay money into the Account in branch or by transferring money from another account with us or another bank using Telephone or Internet Banking.
2.4 In total the maximum you can hold in fixed term accounts with us at any one time (excluding interest) is £5,000,000.
2.5 Withdrawals or early closure are not permitted under any circumstances during the term except in the event of your death. If you die we will repay your deposit and interest up to the date of early closure on receipt of a request to do so.

3. INTEREST
3.1 Your interest remains fixed for the duration of your term. The rate will be the rate we offer you when you open the Account.
3.2 Interest is calculated daily on the balance in the Account. We will pay interest to the account you nominate when you open your Account. If the term of your account is in years (for example, 1 or 2 years) you can choose to have interest paid either yearly or monthly. If your account term is in months (for example, 6 or 18 months) interest can only be paid monthly or at the end of the term. Monthly interest may be paid at a slightly different rate.
3.3 Where we pay interest yearly we will pay it on the anniversary of account opening, or the next working day if that day is not a working day.  Where we pay interest monthly we will pay it once a month on the same day each month as you open the Account, or the next business day if that day is not a business day. If that day does not occur in a given month, your interest will be paid on the last business day of that month.
3.4 Interest will be paid net of income tax (currently 20%) unless you register your account to receive gross interest, where eligible. A separate registration is required for each account you hold.

4. TERM
4.1 The term will be for the fixed period you agree to in your application for the Account.
4.2 The Account term will run from the day you open the Account.

5. MATURITY
5.1  At least 30 days before the end of the term, we will write to you asking for instructions about what you would like us to do with the balance in your Account. If you do not give us instructions before the end of the term (or we cannot reasonably comply with your instructions), on the last day of the term (or the next working day if this falls on a Saturday, Sunday or Bank Holiday), we will transfer the balance in your Account to a Matured Funds Account. We will send you full details when we write to you.
5.2 When we write we may also send you information about other accounts we think may be appropriate, for example, if we are offering similar accounts at the time that you may want to reinvest in.

Glossary

AER

AER stands for Annual Equivalent Rate. It illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different savings accounts.

Net rate

Net rate is the rate of interest payable after allowing for the deduction of income tax at the rate specified by law (currently 20%).

Gross rate

Gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law (currently 20%).

Tax free rate

Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

Ways to apply

By phone

Just give us a call and we’ll open your account over the phone.

0845 730 1400
Lines are open Monday-Friday 7am-10pm, weekends 8am-6pm.

    At your local branch

    Visit your local branch and we’ll open an account for you. You’ll need to take proof of your identity.

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