Access to your money whenever you want and a high rate of return
Instant Transfer Account Interest Rates
The Instant Transfer Account offers an impressive rate of return. And the interest rate is tiered — the more you have in your account the higher the interest rate.
| Summary Box Key Product Information for our Savings Account(s) |
|
|---|---|
| Account Name | Instant Transfer Account |
| Interest Rates (AERs) |
Please see below for full information. Interest rates are variable. |
| Tax Status | Interest is normally payable after allowing for deduction of income tax at the specified rate (currently 20%) but may be paid gross if the appropriate completed HM Revenue and Customs form is provided. |
| Conditions for Bonus Payment | For bonus rate information please see below. The bonus rate is paid for 6 months. |
| Withdrawal Arrangements | No notice period or penalties for withdrawals. |
| Access | Internet/Phone/Post |
Current Interest Rates
| Balances | Gross Interest Rate including bonus* | Annual Equivalent Rate (AER) including bonus* | Gross Interest Rate/AER without bonus | ||
|---|---|---|---|---|---|
| £50,000 and over | 1.85% | 1.23% | 0.60% | ||
| £25,000 to £49,999 | 1.80% | 1.18% | 0.55% | ||
| £100 to £24,999 | 1.75% | 1.13% | 0.50% | ||
| *The above rate includes a 1.25% interest rate bonus for new customers in the first 6 months. | |||||
Previous Interest Rates
As a comparison the following table shows rates previously available (including introductory bonus) from Scottish Widows Bank on the same account from 1 March 2009 to 1 April 2009.
| Balances | Gross Interest Rate including bonus* | Annual Equivalent Rate (AER) including bonus* | Gross Interest Rate/AER without bonus |
|---|---|---|---|
| £50,000 and over | 2.35% | 1.73% | 1.10% |
| £25,000 to £49,999 | 2.30% | 1.68% | 1.05% |
| £100 to £24,999 | 2.25% | 1.63% | 1.00% | *The above rate includes a 1.25% interest rate bonus for new customers in the first 6 months. |
Interest Payment Periods
A choice of interest payment periods of either monthly, quarterly, six monthly or annually is available for Instant Transfer Accounts.
Definitions
On the interest rate table you may see some terms you are unfamiliar with. These are:
AER — Stands for the 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 contain an AER, you will be able to compare more easily what return you can expect from your savings over time).
Gross — This is the contractual rate of interest payable before the deduction of income tax at the rate specified by law (currently 20%).
The AER advertised is based on interest paid gross and capitalised to the account once a year - please note that other interest payment periods are available and the actual interest rate on your account will be lower if you have interest applied more frequently, but when compounded will equal the AER.
