Online Fixed Bonds


    At a glance

    • Up to 1.75% gross/AER fixed on balances of £2,000+.
    • Know what to expect with a fixed rate.
    • Interest will be paid 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 Online Fixed Bond account

With our Online Fixed Bonds, put your money away for fixed terms from 1 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 Online Fixed Bond at any time, and you’re able to check your account balance via Internet Banking.

At least 30 days before the end of the term, we’ll write to you asking for instructions about what you would like us to do with your Online Fixed Bond account. At maturity you can choose to pay your savings into another account, or into another Online Fixed Bond account. If we don’t hear from you, your account will automatically be transferred to a Matured Funds account.

Please note: To manage on Online Fixed Bond account, you need to be registered for Internet Banking.

1 Year Online Fixed Bond

BalanceInterest annually
AER/Gross %
Net %
£50,000+
1.30
1.04
£2,000 - £49,999
1.25
1.00

These interest rates are correct as of 22/10/2013.

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These rates are subject to availability and can be withdrawn at any time without notice.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.

 

2 Year Online Fixed Bond

BalanceInterest annually
AER/Gross %
Net %
£50,000+
1.55
1.24
£2,000 - £49,999
1.50
1.20

These interest rates are correct as of 08/05/2013.

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These rates are subject to availability and can be withdrawn at any time without notice.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.

3 Year Online Fixed Bond

BalanceAnnual Interest
AER/Gross %
Net %
£50,000+
1.75
1.40
£2,000 to £49,999
1.75
1.40

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These rates are subject to availability and can be withdrawn at any time without notice.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.

Online Fixed Bonds

Account name Online Fixed Bonds
Interest rates (AERs) Interest fixed for the term of account chosen.
Available for one year, two years or three years. Interest paid annually. Online Fixed Bond Interest Rates
Tax status Interest is paid net of basic rate income tax.

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 non-tax payer and have completed an HMRC R85 form, you can receive your credit interest paid gross. You will need to complete this form for each account you hold. You can download the R85 form at HM Revenue & Customs.
Conditions for bonus payment 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 Web.

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

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

  • a UK resident
  • over 16 years of age


What you'll need

You may find it quicker to complete your application if you have these details to hand:

  • Your addresses and postcodes for the last 3 years.

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.

Online 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 Online Fixed Bond Account (the Account) is a fixed term, fixed interest rate account that can only be opened through Internet Banking. 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.

1.2 Your Account can be held in your sole name or held jointly.

1.3 You can only open the Account through Internet Banking.

1.4 You can hold up to five Online Fixed Bond Accounts at one time.

2. DEPOSITS AND WITHDRAWALS

2.1 The minimum deposit is £2,000, and the maximum deposit is £1,000,000.

2.2 You have ten working days from opening to make payments into the Account. After that, additional deposits will not be accepted.

2.3 You can pay money into the Account through Internet Banking or by transferring money from another account with us or another bank.

2.4 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. We will pay it yearly on the anniversary of account opening, or the next working day if that day is not a working day.

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 (including the last month’s interest) to a Matured Funds Account, or, if the Matured Funds Account is no longer available, into the nearest equivalent that we offer to that account at that time.

that can only be opened through Internet Banking.

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.

Apply online today

You can open an Online Fixed Bond account today with a lump sum of £2,000 or more and if you are:


You may find it quicker to complete your application if you have these details to hand:

  • Your addresses and postcodes for the last 3 years.

    Ask a question

    For answers to common queries please use our help centre.

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