Cymraeg

Maturity 1 Year Fixed Rate Bond (FRB161)

This product is exclusive to our loyal savers, you will benefit from a higher rate. Our 1 Year Fixed Rate Bond may be right for you if you have a lump sum to invest and can leave your investment untouched for 1 year.

  Interest Rate Balance Gross* AER†
Maturity Interest £500 - £2,000,000 4.25% 4.25%
Monthly Interest £500 - £2,000,000 4.17% 4.25%
  • You can only open this account if you have a Principality fixed term account coming to the end of its fixed term
  • Pay in from £500 to £2,000,000
  • You can add more money for up to 5 business days from the date you open it
  • Choose to have the interest paid on maturity or every month
  • No withdrawals allowed before the end of the one-year term
  • You cannot close this bond early
  • We can stop accepting applications at any time. While it remains available you can only open it within 14 days of the date your existing Principality fixed term account comes to an end
Summary Box
  Summary Box
What is the interest rate? Fixed annual interest       4.25% Gross* each year      4.25% AER†
Fixed monthly interest     4.17% Gross* each year      4.25% 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:
  • at maturity, 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 one year until the bond matures (when the account comes to an end).
    What would the estimated balance be after 12 months based on a £1,000 deposit? £1,042.50

    This is based on you choosing to have interest paid at maturity and added to your bond and you not making any further payments into the account.
    How do I open and manage my account?
    • You must be a Principality customer with a fixed term savings account coming to the end of its fixed term (maturing).
    • You must be a UK resident (see your Maturity 1 Year Fixed Rate Bond account terms).
    • There is no minimum age to open this account. If you are under 14, it must be opened as a trust account.
    • You can move money from your maturing Principality account in branch, at an agency, by post or online.
    • You can open the account up to 14 days after the date your existing Principality account matures unless we remove it from sale. We can stop accepting new applications for this account at any time.
    • You must keep at least £500 (the minimum balance) in the account.
    • If your bond reaches £2,000,000 (the maximum balance) you cannot pay any more money in.
    • You can keep making payments into your bond for up to 5 business days after opening the account.
    • Your bond will mature after one year, 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 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 gov.uk and search Personal Savings Allowance.
    • 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 & Customs (HMRC). If a child earns more than £100 in interest from money given by a parent, the parent may also have to pay tax. For more information visit gov.uk and search 'interest on savings for children'.
    • 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 26/09/2024.
    Help & guidance
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    Guides Read more for top tips on saving and answers to your savings and ISA questions.

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    Contact us If you would like to speak someone for help give us a quick call. 

    Before you apply below, please read the Maturity 1 Year Fixed Rate Bond (FRB161) 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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