Interest rates viewable here.
Personal Savings Allowance
From 6 April 2016, individuals earn interest on their savings tax free up to a certain amount. The allowance depends on the individual's income: basic rate tax payers are able earn up to £1,000 in savings interest tax free and higher rate tax payers are able to earn £500 tax free. Additional rate tax payers do not have a Personal Savings Allowance.
Kingdom Bank pays all savings interest gross - meaning that there is no tax deducted.
This means that individuals who exceed their Personal Savings Allowance, or who do not have one, will owe tax on some, or all, of their savings interest. For more information please see the latest Government information at www.gov.uk/government/publications/personal-savings-allowance-factsheet, or contact HMRC at www.gov.uk/contact-hmrc or on 0300 200 3310.
The interest rate is linked to Bank of England Base Rate (‘Base’) as follows:
Changes to the rates will become effective on the working day following the announcement of a change in the Base Rate and will be notified in accordance with the General Terms and Conditions. Interest accrues on the daily balance at the rate notified to you from time to time. Interest is compounded to the account on the 31st December each year.
As this account pays a variable rate of interest it can change over time. Changes to the rates will become effective on the working day following the announcement of a change in the Bank of England Base Rate.
If you deposit £1,000.00 when you open the account, the balance after 12 months will be £1,001.40.
If you deposit £5,000.00 when you open the account, the balance after 12 months will be £5,017.00.
If you deposit £25,000.00 when you open the account, the balance after 12 months will be £25,110.00.
You must open the account with at least £1.
This account is only available to individuals.
No account can be opened until a correctly completed, signed and dated application form is received in the post together with our other standard account opening forms and our performing all preliminary identification and other checks to our satisfaction.
Deposits can be added at any time, by post, standing order or your own internet banking.
This is a savings account with telephone banking functionality. All withdrawals are made to a nominated account (set up on account opening) by calling the bank and completing the security procedure using memorable details and characters from a password. You are also able to request withdrawals in writing.
If you change your mind, you can advise us in writing and we will cancel the account free of charge within 14 days of opening.
You can make withdrawals from this account after 32 days notice and there are no charges for doing so.
All withdrawals must be made to an account in the same name. We will not permit a withdrawal to a third party by any method.
No charges or penalties (except those referred to in out terms and conditions where we permit early withdrawal at our discretion and any charges on transfer before maturity or notice period served) apply to these accounts.
Savings terms explained
AER stands for Annual Equivalent Rate. Whenever you see an advert for a savings account which shows an interest rate, you will see the AER. This means you can use the AER to compare accounts. It shows what the interest rate would be if your interest was paid and compounded once each year.
For more definitions, view our savings glossary.