Lloyds Upfront Interest 1 Year Online Fixed Bond
Skip to the good bit and get 12 months' savings interest paid in month one. Save it, invest it or spend it.
Features and benefits
Let's break it down
A video summary about upfront interest
Watch our short video to learn how upfront interest accounts work, how they differ from traditional savings accounts, and what to consider before you apply.
(1 min 38 secs)
What interest will I receive?
|
Amount you deposit |
Fixed interest rate |
Interest you'll recieve upfront* |
|---|---|---|
|
Amount you deposit £10,000 |
Fixed interest rate 4.00% AER |
Interest you'll recieve upfront* £400 |
|
Amount you deposit £20,000 |
Fixed interest rate 4.00% AER |
Interest you'll recieve upfront* £800 |
|
Amount you deposit £50,000 |
Fixed interest rate 4.00% AER |
Interest you'll recieve upfront* £2,000 |
*This shows how much interest you could earn depending on how much you save. This account currently pays 4.00% AER/gross fixed interest.
Get an extra 0.20% AER/gross on the 1-year term if you have a Lloyds Premier current account, Private Banking Personal Current Account or Private Banking Savings Account that’s been open for at least 8 days.
Awarded Moneyfacts Five-Star rating
Recognising how easy it is to open a personal savings account with Lloyds.
Summary box for the Upfront Interest 1 Year Online Fixed Bond
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4.00% AER/gross fixed interest on balances of £500 or more.
Get an extra 0.20% AER/gross on the 1-year term if you have a Lloyds Premier current account, Private Banking Personal Current Account or Private Banking Savings account that’s been open for at least 8 days.
Your interest is paid for the full term upfront, rather than at the end of the 12-month term. This means you won’t get an interest payment when the account ends.
Interest is worked out daily based on the balance in your account, including any money you add in the first 10 days.
After these 10 days, we’ll work out:
- the interest you’ve earned so far, and
- interest for the rest of your term, based on your balance at that point.
We’ll then pay the total interest to your nominated account on the next available working day.
The upfront interest is taxable and counts towards your Personal Savings Allowance in the tax year it's paid to you. If you're unsure how this may affect you, you should consider seeking independent financial or tax advice.
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No. This account has a fixed rate of interest so the rate won't change during the term.
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For example, if you deposit £1,000 you will get £40 in interest upfront, after 12 months you will have a balance of £1,000 as interest has already been paid upfront.
This assumes that:
- you add your money on the day you open the account, and
- you don’t add more after that.
Because the interest is paid upfront, the balance of your Upfront Interest 1 Year Online Fixed Bond at the end of the 12-month term will be the amount you originally saved.
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You can open this account online. Once open you can manage your account online in branch or by phone.
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- You must be 16 or over and resident in the UK.
- You can open this account in your sole name only.
- The minimum amount you can add is £500. The maximum is £9 million.
- The term starts on the day you open the account.
- You have 10 days to add money.
- You can add money as many times as you like during these 10 days.
- After the 10 days are up, you won’t be able to add any more money.
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You won’t be able to withdraw any money or close this account before the end of the fixed term.
After 1 year, the account will automatically change to a Standard Saver with the original balance of your Upfront Interest 1 Year Online Fixed Bond, before the upfront interest was paid. Before this happens, we’ll contact you to explain your options and next steps.
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Gross rate means we won’t deduct tax from the interest we pay on money in your account. It’s your responsibility to pay any tax you may owe to HM Revenue & Customs (HMRC).
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will include an AER, it makes it easier for you to compare what return you can expect from your savings over time. Even though interest on this account is paid upfront, the AER is shown to make comparisons easier.
Apply online
Whether you are a new or existing customer you can apply online or in app.
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Do you want to apply offline?
If you’d prefer to speak to someone, give us a call or visit your nearest branch.
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