Savings Bond

These are ideally suited to those that have a lump sum to invest for a fixed term. It offers a choice of investment periods.

Savings Bonds (0.10% - 1.00% Gross/AER)

Interest rates viewable here for individuals and here for organisations.

  • Choice of 6, 12, 24 or 36 month terms
  • Available for balances between £2,000.00 and £50,000.00
  • Interest rate is fixed at outset, and paid annually or at maturity
  • No deposits or withdrawals allowed during term
  • Simple roll-over facility at maturity
  • Available to individuals, charities, associations, businesses and trusts

How to Apply

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 £1,000.00 in savings interest tax free and higher rate tax payers are able to earn £500.00 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.

Summary box for the

Savings Bonds (0.10% - 1.00% Gross/AER)

What is the interest rate?

The interest rate is a fixed rate as follows:

  • 6 months Savings Bond is 0.10% AER
  • 12 Months Savings Bond is 0.35% AER
  • 24 Months Savings Bond is 0.60% AER and
  • 36 Months Savings Bond is 1.00% AER

Interest is compounded to the account at the end of the term or at each anniversary and / or at the maturity date.

Interest accrues on the daily balance of the Account at the fixed rate notified to you on opening the Account.

Can Kingdom Bank change the interest rate?

No. We are not able to change the interest rate mid term.

What would the estimated balance be after 12 months?

If you deposit £2,000.00 in a 6 months Savings Bond, the balance after 12 months will be £2,002.00.

If you deposit £2,000.00 in a 12 months Savings Bond, the balance after 12 months will be £2,007.00.

If you deposit £2,000.00 in a 24 months Savings Bond, the balance after 12 months will be £2,012.00.

If you deposit £2,000.00 in a 36 months Savings Bond, the balance after 12 months will be £2,020.00.

This will apply to the 12, 24 and 36 month Bond as standard, on the 6 month Bond this assumes:

  • You don’t withdraw any money and interest is paid into this account.
  • The interest rate stays the same.
  • You don’t add any more money.

How do I open and manage my account?

Opening:

You must open the account with at least £2,000.00.

No account can be opened until a correctly completed, signed and dated application form is received together with our other standard Account opening forms and our performing all preliminary identification and other checks to our satisfaction.

Managing:

Information can be requested on the phone but all instructions should be sent to us in the post.

We will contact you before your Bond matures to offer you a range of options including re-investment and withdrawal options.

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.

Can I withdraw money?

No deposits or withdrawals are permitted during the term of the deposit.

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.

Additional information

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.

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