Eligibility
- Minimum deposit of £10,000
- Maximum deposit of £5 million
Deposits
- The deposit can be made by cheque or internal transfer from an existing Scottish Widows Bank account
- Cheques must be from an account held in your client's name (building society cheques need to be verified by issuing branch)
- No additional deposits can be made
- Third-party cheques are not permitted
Withdrawals
- No partial withdrawals are allowed and you can't close a fixed term deposit account before the maturity date
Maturity of the 1 year term
At least 30 days before the end of the 1 year term, your client will receive a letter advising of their options. These are
- Roll over the current term deposit to the one available at the time of maturity
- Transfer money to another savings account with Scottish Widows Bank
- Transfer money to the nominated external account
If we don't receive any instruction from your client, the money will automatically be rolled over to a similar Fixed Term Deposit Account available at that time.
Interest payments
- Interest will accrue at the fixed rate from the start date but will not be applied until the maturity date 12 months later
- The account will earn a variable rate of interest at the Bank of England base rate, until the actual start date, when the fixed interest rate will begin
- The interest earned during this period will be added to your client’s original investment at the start of the fixed rate period, and will be paid net or gross depending on tax status
- At the end of the term your client will receive a closing statement and an interest certificate
Tax
- Interest is normally payable net of lower rate tax (currently 20%)
- Interest may be paid gross without deduction of basic rate tax subject to confirmation of tax status as evidenced by the following documentation or as otherwise agreed with our Customer Services staff
- Charity Confirmation of the Charity Registration Number
- Clubs/Association Latest annual accounts signed by auditors or Deed of Constitution
- Company Certificate of Incorporation
- Pension Fund HM Revenue & Customs (HMRC) scheme reference number
- Individual HMRC appropriate form
- Trusts Copy of an HMRC ruling on the Trust
- Others please contact our customer service staff
- Deposits of pooled client funds are paid gross
- It is your client’s responsibility to declare interest received
Important notice
Please note that charges, terms and limits may change. We may change the selection of funds that we make available. There may be restrictions on the amount that can be invested in certain funds. Please contact us for details of any restrictions that apply. Tax treatment depends on the individual circumstances of your client and may be subject to change in the future.