Fixed Rate Business Bond

1 Year Fixed Rate Business Bond

• 1 year Business Bond Gross/ AER (fixed) based on funds deposited on 1 January 2020. Rates correct as at 3 December 2019.
• Interest is calculated daily and paid annually.
• Interest is paid on the 1st of the month following opening and then at maturity.
• Interest will be added to your bond.
• If the maturity date falls on a Saturday, Sunday or Bank Holiday the maturity will take place on the next working day and an interest rate of 0.10% gross p.a. (variable) will be paid from the maturity date.

No, the interest rate is fixed during the term. This is detailed in Condition 17 in our General Terms & Conditions.

Estimate below assumes that the bond is opened and the deposit made on the 1st of the month and interest earned is paid back to the bond.

This illustration is only an example and doesn't take into account individual circumstances.

At the end of term

• We'll contact you around 14 days before the bond term ends to tell you your options.
• The term of the Business Bond is fixed from the day of opening until the stated maturity date.
• When the term ends (at maturity) the money will be transferred into an account which allows you access to your money in branch or over the phone, unless before the end of the term you tell us otherwise. We will write to you to confirm product details and rates around 14 days before your bond matures.
• If we don’t hear from you, we’ll transfer your money into an instant access Business Bond Maturity Account, currently paying 0.10% AER/ Gross (variable).

Estimated balance of the Business Bond Maturity Account after 12 months:
Estimate below assumes that the Bond Maturity Account is opened and the deposit made on the 1st of the month, no further deposits or withdrawals are made and interest earned is paid back to the account.

This illustration is only an example and doesn't take into account individual circumstances.

To open the account:

• Your business must be registered in the UK;
• You must have at least £5,000 to deposit in the account;
• All directors, owners (shareholders) or partners must be UK residents;
• All directors, owners (shareholders) or partners must be aged 18 or over;
• You must be able to leave your funds untouched for the fixed term;
• You must have up to two directors, owners (shareholders) or partners;
• Your business must operate as a sole trader, partnership, limited liability partnership, private limited company or a trust, or be a not-for-profit organisation such as a club, society or charity.
• To be eligible for the higher interest on the Fixed rate Business Bond, you must be a 1|2|3 Business World customer at the point of opening

Opening

Business Bonds are only available to existing customers.

You can apply:

• By calling us on 0800 731 6666.

Managing the account

• By telephone and post

• No withdrawals are permitted during the fixed term

1|2|3 Business World eligibility

• A 1|2|3 Business World customer is someone who has a 1|2|3 Business Current Account (including Start-up and Switcher offers). All customers must meet the eligibility criteria for the 1|2|3 Business Current Account (including Start-up and Switcher offers) and 1|2|3 Business World offer.

Tax status

• All interest payments will be paid without tax deducted (gross). If the total amount of interest you receive in any tax year exceeds any Personal Savings Allowance to which you’re entitled, you may have tax to pay at the applicable rate. This would need to be paid directly to HM Revenue & Customs. For more information, please visit gov.uk and search for 'Personal Savings Allowance'

Cancellation

• There is no right to cancel your Business Bond once we are in receipt of your deposit. Full Account details can be found in the Key Facts Document in the key documents section.

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The Fixed Rate Business Bond is subject to availability and may be withdrawn from sale at any time without notice. Rates and information correct as at 3 December 2019.