2 Year Fixed Rate Bond

Our 2 Year Fixed Rate Bond may be right for you if you have a lump sum to invest and can leave your investment untouched for 2 years.

  Balance Gross* p.a. AER†
Annual interest £500 - £2,000,000 0.90% 0.90%
Monthly interest £500 - £2,000,000 0.90% 0.90%
  • Save online, in branch or by post
  • Save from £500 to £2 million
  • Interest is calculated on your daily balance and paid annually or monthly
  • Additional deposits permitted while the bond remains on sale
  • No withdrawals allowed before the end of the 2 year term
  • No closure permitted prior to maturity
  • Limited availability
Summary Box
  Summary Box
Account name 2 Year Fixed Rate Bond Issue 287
What is the interest rate?
AER†
Gross* p.a.
Fixed annual interest
0.90%
0.90%
Fixed monthly interest
0.90%
0.90%

Interest is calculated on your daily balance and paid annually on the anniversary of your bond opening, or monthly, paid one month after the date on which your bond is opened, and then monthly after that, depending on what you choose.
Can Principality change the interest rate? No, the rate on this bond is fixed for 2 years until maturity.
What would the estimated balance be after 24 months based on a £1,000 deposit? £1,018.08 (based on the assumption that you chose to have interest paid annually and added to your bond and that no further deposits were made).
How do I open and manage my account?
  • There is no minimum age to open this account. You must be a UK resident for tax purposes to open and operate this account.
  • Open your bond in branch, agency, online or by post.
  • Minimum balance is £500, maximum balance is £2,000,000.
  • You can keep making deposits while the bond remains on sale.
  • The bond will mature after two years on the anniversary of opening.
  • Manage your bond in branch, agency, online or by post.
Can I withdraw money?
  • No, closure or withdrawals are not permitted prior to maturity.
  • We may allow you to close your bond during the fixed term at our absolute discretion in exceptional circumstances.
  • We will write to you before your bond matures to let you know what you can do with your balance.
  • If we don't receive any instructions from you before your bond matures, your balance will be transferred to our Instant Access Account or its nearest equivalent.
Additional information
  • Service charges and costs may apply to your account. These are outlined in our Tariff of Charges.
  • If the total amount of interest you earn exceeds your Personal Savings Allowance then you may have to pay tax directly to HMRC. For more information visit www.gov.uk and search ‘Personal Savings Allowance’.
  • In certain circumstances we may refuse an instruction to operate an account. These circumstances are outlined on page 5 of the Savings Terms and Conditions.
  • Rates correct as at 07/12/16.
Calculate your savings

Savings calculator

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  1. The results displayed were dependent on the information you provided and are for illustrative purposes only and are by no means an indication of being suitable for your individual circumstances.
  2. The calculations assume interest is paid gross* of income tax on the entire balance on an annual basis
  3. It has been assumed that no withdrawals or additional deposits would be made from the account during the saving duration, and that the interest rate also remains the same during this time (note that interest rates on variable rate savings account are subject to change, and when fixed rate deals end, there is no guarantee that the same rate will be available in the future). 

Before you apply below, please read the 2 Year Fixed Rate Bond Issue 287 Terms & Conditions

As you will be bound by the Account Terms of the account, you must read them. If you do not understand any of the terms and conditions please contact us for further information.

We recommend that you print and keep a copy of these terms and conditions for your records.

Please also read the following:

* Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

† AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year.


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2 Year Fixed Rate Bond Issue 287


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