An interest account for an organisations' pension funds
Interest Rates
The Pension Fund Deposit Account is designed to work efficiently alongside your existing pension fund current account as an interest deposit facility while reducing your exposure to money market interest rate fluctuations.
Summary Box Key Product Information for our Savings Account(s) |
Account Name | Pension Fund Deposit Account |
|---|---|
| Interest Rates (AERs) |
Please see below for full information. Interest rates are variable. The rate will be no less than 0.25% below the Bank of England Base Rate until 31 December 2012. |
| Tax Status | Interest is payable gross as long as confirmation of tax status is evidenced by the following::
|
| Conditions for Bonus Payment | No bonus payment applies to this account. |
| Withdrawal Arrangements | No notice period or charges for withdrawals. |
| Access | Telephone or postal banking. |
Current Interest Rates
| Balances | Gross Interest Rate/AER (variable) |
|---|---|
| £50,000 and above | 2.00% |
| £500 to £49,999 | 1.75% |
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 February 2009 to 1 March 2009.
| Balances | Gross Interest Rate/AER (variable) |
|---|---|
| £50,000 and above | 2.25% |
| £500 to £49,999 | 2.00% |
Interest Payment Periods
Interest Payment/Statements issued Monthly†/Quarterly/Annual
†On request for balances in excess of £50,000.
Interest rate when compounded will equal the annual rate.
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.