Eligibility
- Minimum deposit of £10,000
- Maximum deposit of £5 million
- Joint accounts available
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 permitted throughout the 5 year term
- Early access to funds is permitted on account closure, when the whole balance of the Fixed Term Deposit Account will be repaid minus a charge equal to 365 days’ interest
- Instructions can be given by telephone or post
- On account closure, transfers from accounts are free of charge provided there is one business days notice. Same-day transfer is available if the request is made before 2pm and is subject to an administration charge, currently £25
Maturity of the 5 year term
At least 30 days before the end of the 5 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 Scottish Widows Bank Variable Rate Account with interest payable at the Bank of England Base Rate
Interest payments
- Interest will accrue at the fixed rate from the start date and will be paid monthly, quarterly or annually to either another Scottish Widows Bank deposit account or a nominated external bank or building society account held in your client's name
- 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 included in your client’s first interest payment after the fixed rate commences
- At the end of the term your client will receive a closing statement and an interest certificate
Tax
- Interest will be paid net to UK taxpayers
- Non-taxpayers can receive interest gross by completing the relevant HM Revenue & Customs (HMRC) form.
- It’s your client’s responsibility to declare interest received to HMRC
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.