2 Year Fixed Rate Bond
Issue 475
Account overview
4.00%
Gross* / AER† (Fixed)
£500
Min. opening deposit
- Manage account
- Online, branch or post
- Withdrawals
- Not allowed
- Pay in
- While the product is on sale
- Interest paid
- Yearly or monthly
- Min & max balance
- £500 - £2,000,000
Is this account right for me?
Our 2 Year Fixed Rate Bond is designed to help you set a sum of money aside for two years. You won't be able to put more money in once we take the bond off sale.
For the ones who
- Have at least £500 to open the account with
- Don’t need to withdraw money for two years
- Don’t need to close the account for two years
- Want the certainty of a fixed rate
Not for the ones who
- Don’t have at least £500 to put into the account
- Want to make withdrawals
- Want to save regularly
- Want a variable interest rate
Summary box
This summary contains key information about our 2 Year Fixed Rate Bond. You should read it carefully before applying.
Interest is calculated each day on the money in the account. You can choose whether interest is paid:
- Annually (each year), on each anniversary of your bond opening.
- Monthly, starting one month after the date your bond opened, and then each month after that.
Gross* each year | AER† | |
Fixed annual interest | 4.00% | 4.00% |
Fixed monthly interest | 3.93% | 4.00% |
No, the rate is fixed for two years until the bond matures (when the account comes to an end).
£1,081.60
This is based on:
- You choosing to have interest paid annually and added to your bond.
- You not making any further payments into the account.
This calculation is for guidance only, to show you what a future balance could look like. It does not consider your individual circumstances.
- There is no minimum age to open this account. If you are under 14, it must be opened as a trust 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 may 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 a secure online profile with Principality.
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.
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 and Customs (HMRC). For more information, visit gov.uk.
Children are not exempt from paying tax. If the total amount of interest earned by a child is more than their tax-free Personal Savings Allowance, they may have to pay tax directly to HM Revenue and Customs (HMRC). If a child earns more than £100 in interest during this tax year from money given by a parent, the parent may also have to pay tax. For more information visit gov.uk.
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 12/12/2024.
Downloadable documents
Please take some time to review this important information. We recommend you download these and keep copies somewhere safe; you may choose to print them.
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2 Year Fixed Rate Bond
PDF - 1.42 MB (Opens in the same tab)
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Savings Terms and Conditions
PDF - 4.7 MB (Opens in the same tab)
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FSCS Information Sheet and Exclusion List
PDF - 92KB (Opens in the same tab)
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Tariff of Charges
PDF - 50 KB (Opens in the same tab)
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Your Information
PDF - 216KB (Opens in the same tab)
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Privacy Policy
PDF - 209KB (Opens in the same tab)
Start saving today
Let's get you saving. Apply online or in branch. When you apply online you can:
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Open your account in around 10 minutes
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Fund your account straight away
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Name your account and set a goal to work towards
Additional information
*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 was paid and compounded once each year.
^Tax-free means the interest you earn isn't subject to UK Income Tax and Capital Gains Tax. Tax treatment depends on your individual circumstances and could change in future.