Our agreement with you is made up of general conditions (contained in the Personal Banking Terms and Conditions & Banking Charges (PDF)) and additional conditions which are detailed below. If there is any overlap or conflict between the additional conditions and the general 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.
1.1 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.
2.1 The term of the Account is three years.
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 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.
4.1 You can operate your Account using our branches and Telephone Banking. You will also be able to view your balance using Internet Banking.
5.1 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).
6.1 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), your Account will automatically change to a Standard Saver account and we will pay you interest at our Standard Saver rate. We will send you the conditions for Standard Saver when we write to you. Your account number and sort code will not change.
6.2 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.
7.1 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.