Current interest rates
The 5 Year Fixed Term Deposit Account offers an impressive rate of return, and the interest is fixed for 5 years.
Issue 30: Fixed Term Start date: 15/02/2012 | Maturity date: 14/02/2017
| Balance | Bank of England Base Rate (earned until fixed term start date) Gross/AER | 5 Year Fixed Term Deposit Account |
| Interest frequency | Gross | AER |
| £10,000 – £5,000,000 |
0.50% |
Annually |
4.60% |
4.60% |
| Quarterly |
4.52% |
| Monthly |
4.50% |
Interest payment periods
Interest will be paid monthly, quarterly or annually to either another Scottish Widows Bank deposit account or an external bank account held in your name.
Please note that the contractual rate of interest on your account will be lower than the annual gross interest rate if you have interest paid monthly or quarterly.
Definitions
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%).
Key product information
| Account name |
5 Year Fixed Term Deposit Account |
Interest rates
(AERs) |
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 (shown below), when the fixed interest rate will begin. The interest for the variable rate period will be paid to your nominated account at the beginning of the fixed rate period and will be paid net or gross depending on tax status. After the start date the interest rate is fixed until the maturity date shown below.
Interest must be paid away to either another Scottish Widows Bank savings account or an external bank account held in your name.
Interest can be paid monthly, quarterly or annually. Please see below for current interest rate information.
|
| Tax status |
Interest is paid net of basic rate income tax (currently 20%) but may be paid gross if the appropriate HM Revenue and Customs form is completed. Interest will be paid gross on all deposits of £50,000 and over. As these would be classed as Qualifying Time Deposits by HM Revenue and Customs, it is your responsibility to declare interest received to them. |
| Conditions for bonus payment |
No bonus payment applies to this account. |
| Withdrawal arrangements |
No partial withdrawals allowed.If you need to withdraw your money before the end of the term, you can close your Fixed Term 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 Term 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 Term Deposit Account.
On death of customers before the end of the term, the initial capital plus the full amount of accrued interest will be returned.
|
| Access |
Access is normally only at the end of the agreed term. We'll write to clients before the account matures to ask what they'd like us to do with their money. |