2 Year Fixed Rate Bond Monthly Interest

Our 2 Year Fixed Rate Bond may be right for you if you have a lump sum to pay in and you don't need to take your money out for two years.

  Balance Gross* each year AER†
Annual interest £500 - £2,000,000 1.80% 1.80%
Monthly interest £500 - £2,000,000 1.79% 1.80%
  • Open this bond in branch, at an agency or online
  • Pay in from £500 to £2,000,000
  • Add more money to the bond until it is taken off sale
  • Choose to have the interest paid once a year or every month
  • No withdrawals allowed before the end of the two-year term
  • You cannot close this bond early
  • We can stop accepting applications at any time


  Summary Box
Account name 2 Year Fixed Rate Bond Issue 372
What is the interest rate? Fixed annual interest       1.80% Gross* each year      1.80% AER†
Fixed monthly interest     1.79% Gross* each year      1.80% AER†

(See the meanings of ‘Gross’ and ‘AER’ at the bottom of the page)

Interest is calculated each day on the money in the account and paid:
  • annually (each year), on each anniversary of your bond opening; or
  • monthly, starting one month after the date your bond opened, and then each month after that;
    whichever you choose.
  • Can Principality change the interest rate? No, the rate is fixed for two years until the bond matures (when the account comes to an end).
    What would the estimated balance be after 24 months based on a £1,000 deposit? £1,036.32

    This is based on you choosing to have interest paid annually and added to your bond, and you not making any further payments into the account.
    How do I open and manage my account?
    • There is no minimum age to open this account. If you are under 14, it must be opened as a trust or signatory account.
    • You must be a UK resident (see your 2 Year Fixed Rate Bond account terms).
    • You can open the account in branch, at an agency or online. If you want to open this account with funds transferred from a Principality fixed term account that has matured, you can do this online, in branch, at an agency or by post.
    • You must keep at least £500 (the minimum balance) in the account.
    • If your bond reaches £2,000,000 you cannot pay any more money in.
    • You must make the first payment into your bond within five business days of it opening. If you don’t, we will close the account.
    • You can keep making payments into your bond while we are still offering this bond to customers.
    • Your bond will mature after two years, on the anniversary of the account opening.
    • You can manage the account in branch, at an agency, by post, or by using the online service, Your Account, at www.principality.co.uk.
    Can I withdraw money?
    • No, you cannot make withdrawals or close your bond before it matures.
    • We will write to you before your bond matures to find out what you want to do with your money.
    • If we don’t receive any instructions from you before your bond matures, we will move your money to our Instant Access Account or the nearest equivalent we offer at the time.
    Additional information
    • Service charges and costs may apply to your bond. These are set out in our Tariff of Charges.
    • If the total amount of interest you earn is more than your tax-free Personal Savings Allowance, you may have to pay tax directly to HM Revenue & Customs (HMRC). For more information, visit www.gov.uk and search Personal Savings Allowance.
    • In certain circumstances we may refuse an instruction for using an account. These circumstances are set out in our Savings Terms and Conditions.
    • The interest rates quoted above were correct on 26/05/2022.

    Before you apply below, please read the 2 Year Fixed Rate Bond Issue 372 Terms & Conditions

    As you will be bound by the account terms and your information is held in accordance with our privacy policy, you should read, print and save the below documents for your records. If you have any queries relating to them please contact us for further information.

    Please also read the following:


    ^ Tax-free means UK Income Tax and Capital Gains Tax is not deducted from the interest you earn. This depends on your individual circumstances, and may change in future.

    * Gross interest is the rate of interest before income tax is deducted at the rate set by law.

    † AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid once each year on the whole balance, including previous interest payments.

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