Eligibility
- Minimum investment of £10,000
- Maximum balance of £5 million
- Balances greater than £5 million can be held by special arrangement only
Deposits
The initial deposit can be made by
- A cheque from an account held in trustee’s name (building society cheques need to be verified by issuing branch)
- An internal transfer from an existing Scottish Widows Bank account held in the name of the pension fund
- 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 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 their 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, annually or quarterly to an external bank 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 the 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.
- Interest will be paid gross on all deposits of £50,000 and more
Tax
- 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 service staff
- Pension Fund Evidence of HM Revenue & Customs scheme reference number
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.