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Meet the new bond

3-Year Flexible Monthly Income Bond

If you bank with us, you could open an account online in minutes.

Simply log in or register for Online Banking.

If you don't yet bank with us or prefer to talk, give us a call on 0345 744 54451 or visit a branch.

Enjoy a guaranteed return, with interest paid monthly – and, because sometimes you’ll want more, you can take out up to 3% of your initial deposit each month too. However, withdrawals will reduce the amount of interest earned each month.

  • Earn 1.80% gross p.a./AER2 fixed for three years for balances of £1 to £1 million3
  • Receive monthly interest into your nominated account with us. 
  • One withdrawal each month, up to a maximum of 36 throughout the term4. There's no charge for withdrawals. 

Summary Box

Account name
3-Year Flexible Monthly Income Bond - Issue 1

What's the interest rate?
Interest rates for balances of £1+, effective from 13 September 2018

Interest Option

Interest option

Monthly
Gross p.a. %

AER %

3-year term

1.80

1.80

Monthly interest will be paid into your nominated account with us (this needs to be in the name of one or more bond holders) or will be paid to you by cheque.

Tax liability on interest applies in the tax year it’s paid, which may be different to the tax years in which interest has been earned.

Can we change the interest rate?

No, the interest rates are fixed for the 3-year term of the bond.

What would the estimated balance be at the end of the term based on a £1,000 deposit?

Estimated Balance Table

Deposit amount

Monthly
(Estimated value at the end of the term)

£1,000

£1,054.00

How do I open and manage my account?

You can open an account online, in branch or over the phone. Please see the ‘How to apply’ section below for more details. 

You can open this bond with £1 – the maximum balance is £1 million. 

Eligibility

To apply for our 3-Year Flexible Monthly Income Bond – Issue 1, you need to:

  • Be aged 18 or above
  • Be resident in the UK for tax purposes

Can I withdraw money?

Yes, you make one withdrawal each month, up to a maximum of 36 throughout the term. There's no charge for withdrawals. The maximum value per withdrawal is 3% of your initial deposit. However, withdrawals will reduce the amount of interest earned each month.

You can access your funds and manage your account in branch, or through Online Banking and Telephone Banking if you’re registered.

We’ll contact you before your bond reaches three years to find out what you’d like to do next.

Additional information 

In accordance with UK tax legislation, from the 6 April 2016, interest is paid gross. If you’re a UK taxpayer, you may have to pay tax on interest earned in excess of your Personal Savings Allowance. For information and guidance please refer to HMRC’s website. It’s your responsibility to make sure that you pay any tax due on your interest payments.

Our 3-Year Flexible Monthly Income Bond – Issue 1 is a strictly limited offer and may be withdrawn at any time.

Additional deposits are not allowed during the term of the bond, although you may open additional bonds, subject to availability.

How the 3-Year Flexible Monthly Income Bond works

Interest is calculated daily, so you won’t receive exactly the same each month. The examples we’ve included here are just for illustration.

Terms and conditions

For more information, download our 3-Year Flexible Monthly Income Bond– Issue 1 terms and conditions.

How to apply

There are different ways to apply, depending on whether or not you bank with us. 

Register for Online Banking

Get quick and convenient access to your accounts.

More ways to save

If the 3-Year Flexible Monthly Income Bond – Issue 1 isn’t what you’re looking for, we have other options.

1-Year Fixed-Rate Bond

Make more of your money by locking it away

If you bank with us, you could open an account online in minutes.

2-Year Flexible Bond

Earn a fixed rate of interest on your money

If you bank with us, you could open an account online in minutes.

Instant-access savings

You could make your money grow through our current range of savings accounts

Start saving with as little as £1 through our range of instant-access savings accounts.