Step Bond

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At a glance

A 3 year term with a rate which increases on each anniversary of opening.

On balances £50,000+ Year 1 1.75% gross/AER, Year 2 1.85% gross/AER and Year 3 1.95% gross/AER.

On balances £2,000 - £49,999 Year 1 1.65% gross/AER, Year 2 1.75% gross/AER and Year 3 1.85% gross/AER.

Save from £2,000.

Choose either interest paid monthly at lower gross rates to supplement your income or annually to boost your savings - it's up to you.

No withdrawals or additional deposits allowed.

Rate for each year of your term is fixed from the start.

About the Step Bond

Open a Step Bond today with a deposit of at least £2,000 and you get a fixed rate with an agreed increase at the end of each year up to the maturity end date. Ideal if you’re looking for a long term saving account with a yearly increase on the anniversary of the account opening.

Step Bond interest rates are fixed at the time of opening the account and will change automatically on the first and second year anniversary of you opening your account. You won’t be  able to make any withdrawals after the account is opened.

 

Step Bond 3 Year - Annual

Balance
Annual Interest Year 1
Annual Interest Year 2
Annual Interest Year 3

AER/Gross %
Net %
AER/Gross %
Net %
AER/Gross %
Net %
£50,000+
1.75
1.40
1.85
1.48
1.95
1.56
£2,000 - £49,999
1.65
1.32 1.75 1.40 1.85 1.48

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

Step Bond 3 Year - Monthly

Balance
Monthly interest Year 1
Monthly interest Year 2
Monthly interest Year 3

AER %
Gross %
Net %
AER %
Gross %
Net %
AER %
Gross %
Net%
£50,000+
1.75
1.74
1.39
1.85
1.83
1.46
1.95
1.93
1.54
£2,000 - £49,999
1.65
1.64
1.31
1.75 1.74 1.39 1.85 1.83 1.46

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

  • Minimum opening deposit of £2,000.
  • With our Step Bond you get a fixed rate with an agreed increase at the end of each year or on the first working day following the anniversary date up to the maturity end date.
  • Interest rates are fixed at the time of opening the account and will change automatically on the first and second year anniversary of you opening your account.
  • You won’t be able to make any withdrawals after the account is opened.
  • You can hold more than one Step Bond at any time.
  • You are able to check your account balance via internet banking, telephone banking or by popping into your local branch. After you open the account you have 10 days to fund.
  • We will write to you in advance at maturity asking for instructions about what you would like us to do with your Step Bond account. If available at maturity you can choose to pay your savings into another Step Bond account or another account. If we don’t hear from you, your account will automatically be transferred to a matured funds account.

 

You can choose when and how to have your interest paid. This can be paid into a Lloyds Bank current account, an eligible Lloyds Bank savings account or an account with any UK bank that accepts Faster Payments.

Step Bond

Account name
Step Bond
Interest rates (AERs)
Interest rates are fixed at account opening. The interest rate will change automatically on the first and second anniversaries of you opening your account. Minimum deposit is £2,000. You have 10 days from account opening to fund the account.
Available with a 3 year term only. Interest paid monthly or annually.
View full 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 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 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. If available at maturity you can choose to pay your savings into another Step Bond account or into another account, or If we don’t hear from you, your account will automatically be transferred to a matured funds account.
Access Phone and branch.

Apply by phone

Call us on 0845 730 1400

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

Apply in branch

Visit your local branch with proof of identity.

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

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.

Step 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 Step Bond (the Account) account conditions apply from the opening of your Account until the end of the three year fixed term.

The Account has a fixed interest rate, depending on the balance in the account and the length of time you have held the 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. It is provided by Lloyds Bank plc.

1.  Eligibility

1.1 You must open the Account with a deposit of at least £2,000.

1.2  We must receive your opening deposit within 10 days of you opening the Account (including the day of opening). During this time you can pay money into the Account in branch, using Telephone Banking or using Internet Banking. From then on you cannot add any more to it.

1.3  The maximum deposit we can accept into the Account is £1,000,000. In total the maximum you can hold in fixed term accounts with us at any one time (excluding interest) is £5,000,000.

1.4  To have the Account you must be 16 or over, and a UK resident.

1.5  Your Account can be held in your sole name or jointly with someone else.

2.  Term

The term of the Account is three years.

3.  Interest

3.1  We will pay you interest at fixed rates, depending on the balance and the length of time you have held the Account. The Account interest rate will increase automatically in fixed steps on the first and second anniversaries of the date you opened the Account (or the next working day if your anniversary date is not a working day)

3.2  We will pay interest once a year on the anniversary of opening the Account (or the next working day if your anniversary date is not a working day), or you can ask us to pay you interest monthly. If you choose to have your interest monthly it may be at a slightly different rate. If the day we are due to pay you interest is not a working day we will calculate your interest and pay it into your Account on the next working day.

3.3  You can ask us to pay your interest into a different account provided it accepts faster payments.

3.4  Interest will be paid net of income tax (currently 20%) unless you register your account with us to receive gross interest, where eligible. A separate registration is required for each account you hold.

3.5  If the anniversary of your account opening falls on a non working day, so that your interest rate increases on the following working day, the second and/or third years of your Account will also run from the date your interest rate increases. For example, if your second anniversary falls on a Saturday, the interest rate will change on the following Monday (as long as it is a working day) and the third year of your three year term will also begin on that Monday.

4. Operate your Account

You can operate your Account using our branches and Telephone Banking. You will also be able to view your balance using Internet Banking.

5. Withdrawals and early closure

Withdrawals or early closure of the Account are not permitted under any circumstances during the term, except in the event of the death of the customer (or one of them). In this circumstance the deposit and interest to the date of early closure will be repaid (using the interest rate applying at the date of closure).

6. Maturity

We will write to you before the end of your term asking for instructions about what you would like us to do with the money in your Account. If you do not give us instructions before the end of the term (or we cannot reasonably comply with them) on the last day of the term (or the next working day if this falls on a Saturday, Sunday or bank holiday), your Account will automatically transfer to a matured funds account. We will send you full details when we write to you.

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.

7. Cancellation period

If you are not happy with your choice of account, you can cancel it within 14 days of opening.  If you decide to cancel we will repay you any money you have paid in together with any interest due on it, or help you switch the balance to another account. To cancel this agreement call in to one of our branches or write to us at Lloyds Bank plc, BX1 1LT. There are no charges for cancelling your Step Bond agreement within the 14 day cancellation period, and you do not have to give advance notice. If you miss the 14 day deadline you will not be able to close your account.

Ways to apply

By phone

Call us on 0845 730 1400 and we'll open your account over the phone. Lines are open Monday - Friday 7am - 10pm and 8am - 6pm at weekends.

    At a branch

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

    Ask a question

    For answers to common queries please use our help centre.

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