The interest rate available on a Term Deposit Account is dictated by the length of time you are willing to leave your funds in it. This makes it a highly focused way of saving that can get you to your savings goal quicker, but has less flexibility than other types of bank account. For that reason, a Term Deposit Account is the perfect solution for people who know they can set their funds aside for a fixed period. No withdrawals or additional deposits are allowed in a Term Deposit Account, and interest is paid annually.
|Product Type||Interest Rate||Minimum Deposit||Maximum Deposit|
|1 Year||1.94% AER||£1,000||£250,000||Apply||More info|
|5 Year||2.40% AER||£1,000||£250,000||Apply||More info|
|7 Year||2.75% AER||£1,000||£250,000||Apply||More info|
No withdrawals or additional deposits allowed, interest paid annually. Access - Internet Banking, Phone, Post
Example – If you were to deposit £1,000.00 into the account for 1 year at a rate of 1.94% (fixed) you would generate an estimated balance of £1,019.40 in one year.
The above example is for illustrative purposes only, does not take account of your individual circumstances and makes the following assumptions:
This account might be right for you if:
Your account will need to be funded from a UK current account and all interest and capital will be paid into this account.
Before opening a Term Deposit Account, you should decide whether you can tie your money up for a long period of time. If interest rates go up, you may find the rate you are getting is lower than what other accounts are paying. But you will not be able to move your money until the end of the fixed term and the value of your savings might go down.