Pension Fund Deposit Account 2

An interest account for your organisation’s pension funds

Key details

  • Available to pension fund trustees only
  • Designed to hold the cash element of pension funds
  • Operates as a telephone or postal account, linked to your existing pension fund current account
  • Telephone access from 8am to 6pm Monday to Friday.

How it works

Deposits

Deposits can be made by:

  • telephone or post
  • cheques from an account held in your organisation’s name (building society cheques need to be verified by issuing branch).
  • regular or occasional transfers by Direct Debit from a nominated account:
    • Direct Debit mandate (PDF, 67KB) needs to be completed in order to use this facility.
    • there must be cleared funds in the current account.
    • regular monthly transfers of additional funds can be arranged.
  • third-party cheques are not permitted.
Withdrawals

If you want to transfer money to your nominated account:

  • You can instruct withdrawals by telephone or post.
  • The minimum withdrawal is £100.
  • Transfers of up to £250,000 per day will be free of charge and if you instruct us before 6pm you’ll receive the money into your nominated account by the end of the same day. If you instruct us after 6pm you’ll receive the money into your nominated account on the next working day.
  • We can arrange same day transfers by CHAPS if you give us the instruction by 3.40pm that day. There’s a £25 charge for this service.

Account Summary Box

Summary box
Account name Pension Fund Deposit Account 2
What is the interest rate? The interest rate is variable. The current rate is shown in the table below.
Balance Gross rate / AER
£500+ 0.10%
  • Interest can be paid monthly, quarterly or annually.
  • Monthly interest payments are only available on balances of at least £50,000.
  • Interest will be paid on all funds in the account.
  • Interest can be paid to the account or, providing the account balance is above £2,500, transferred to your pre-advised account.
Can Scottish Widows Bank change the interest rate? Yes. We can move the interest rate up or down at any time. For example, if the Bank of England base rate changes, we will review our rates. The terms and conditions explain when and how we will do this.
What would the estimated balance be after 12 months based on £1,000 deposit?

An illustration of the future balance is shown below.

Initial deposit Gross rate / AER Balance at 12 months
£1,000 0.10% £1,001.00

This is an illustrative example and assumes that:

  • You don’t withdraw any money and interest isn’t paid out of the account.
  • The interest rate stays the same.
  • You make your initial deposit payment on the day you open the account.
  • You don’t make any further deposits.
How do I open and manage my account?

You can open an account by printing our online application form and posting it to us.

  • Applicants must be aged 16 and over and a UK resident.
  • The minimum initial deposit is £500.
  • The account cannot have a balance of more than £5,000,000. If you wish to discuss special arrangements, please call us.
  • Additional payments into the account must be at least £100.

You can manage the account by telephone or by post.

Can I withdraw money?
  • Yes. You can make withdrawals from the account.
  • Individual withdrawals must be at least £100.
  • Transfers of up to £250,000 per day will be free of charge and if you instruct us before 6pm you’ll receive the money into your nominated account by the end of the same day. If you instruct us after 6pm you’ll receive the money into your nominated account on the next working day.
  • We can arrange same day transfers by CHAPS if you give us the instruction by 3.40pm that day. There’s a £25 charge for this service.
Additional information
  • Accounts can be opened in sole or joint names.
  • You can close the account at any time.
  • There is a 14-day cancellation period from the account opening date during which the account can be closed without any charge.
  • AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
  • Gross rate means we will not deduct tax from the interest we pay on money in the account. It’s your responsibility to pay any tax you may owe to HM Revenue and Customs (HMRC).

How to Apply

Before applying you should:

To open an account simply download and print out the application form, complete it and send it to us with the following:

  • A cheque (this must be in the same name of the account you will hold with Scottish Widows Bank) from your main bank/building society current account.
  • A completed and signed Direct Debit mandate if you would like us to collect payments by Direct debit.
  • A letter from Inland Revenue confirming that funds are exempt from tax.

Please note, if you're making your initial deposit by Direct Debit, we require identification in the form of an original bank statement, cancelled cheque or pre-printed pay-in slip from a UK bank or building society current account on which you are named (this will be returned without delay).

Download Instant Transfer Account form - pdf 149k

Send your completed application form to:

Scottish Widows Bank
PO Box 883
Leeds
LS1 9TY


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