5 Year Fixed Term Deposit Account

This account is available in issues, each with a certain start date and maturity date – five years later.  The fixed rate of interest you will earn during the five year term will be determined prior to each issue and available for you to check before you choose to open your account.

You can open an account at any time from when we announce the next issue until the actual start date for that five year term. However, we reserve the right to close the issue early if demand is higher than expected.  Any account opened will earn a variable rate of interest equivalent to the Bank of England base rate, until the start date, when the fixed interest rate will begin.

• Your initial deposit can be made by cheque or internal transfer from an existing account.
• No additional deposits can be made.
• Cheques must be drawn on an account held in your name.  Building Society cheques must be stamped and signed by the issuing branch to confirm that they are from an account held in your name.

These are the only ways we can accept deposits. Transfers of money into your account via the bank money transmission system — such as bank giro credit, standing order or dividend mandate — are not possible. This is because there can be delays and identification difficulties with these methods that we have no control over.

• No partial withdrawals allowed.
• If you need to withdraw your money before the end of the term, you can close your fixed rate deposit account, however you will be charged an amount equal to 365 days' interest. We will work this out at the rate at which we pay interest on your fixed rate deposit account.
• We may take this amount from the interest we owe you on your account which we have not yet paid. If there is not enough interest that we have not yet paid we will take this amount from your fixed rate deposit account. You can ask us to pay the money in your fixed rate
  deposit account into another savings account with Scottish Widows Bank or your nominated external account.
• On death of customers before the end of the term, the initial capital plus the full amount of accrued interest will be returned.

At least 30 days before the end of the five year term, we will send you a letter advising of your options. These are:

• Roll over your current Term Deposit to the one existing at the time of maturity
• Transfer money to another savings account with Scottish Widows Bank
• Transfer money to your nominated external account.

If we don’t receive any instruction from you, your funds will automatically be rolled over to a Scottish Widows Bank Variable Rate Account with interest payable at the Bank of England Base Rate. Please see the Terms & Conditions – Section 6 for more details.

• Interest will accrue at the fixed rate from the start date and will be paid monthly, quarterly or annually.
• Interest will be paid away to either another Scottish Widows Bank deposit account or an external bank or building society account held in your names.
• Deposits made during the offer period will earn a variable rate of interest at the Bank of England base rate, until the actual start date of the fixed term, when the fixed interest rate will begin. The interest for the variable rate period will be included in your first interest payment after the fixed rate commences, and will be paid net or gross depending on tax status.
• Interest will be paid net to UK taxpayers for single deposits under £50,000.  Non-taxpayers can receive interest gross by completing the relevant HM Revenue and Customs form.
• Interest will be paid gross on balances of £50,000 and over and it’s your responsibility to declare interest received to HM Revenue and Customs.

You will receive annual statements. At the end of the term you will receive a closing statement and an interest certificate.

Yes, the 5 Year Fixed Term Deposit can be opened as a joint account.

A joint account means

1. Both of you are separately responsible for keeping to its terms. If either of you does not keep to them, we can take action against either or both of you singly or together.
2. We may give any information about the account to either of you (even if you choose that both of you must sign instructions to us).
3. If you choose to allow either of you to authorise transactions on the account, either of you will be able to withdraw any money in the account (which may be without the other’s knowledge). We will not be obliged to make any enquiries about the purpose of any transactions.
4. The account cannot later be put into just one of your names, unless you both agree.
5. If there is a dispute between you about your account, we may require you both to authorise transactions until you both agree how the account is to be run.
6. If either of you dies, we will pay any balance on your account to the other.
7. If a joint account is opened we require to verify the identity of all account holders.

Instructions from either or both of you

The option of both of you to authorise all transactions on your account is not available. This is because it is not possible for more than one customer to give an instruction at the same time by telephone.

The 5 Year Fixed Term Account is very straightforward and easy to open — whether you choose to do it by phone or post.

View the full Terms and Conditions.