The Gross rate is the contractual rate of interest payable before deduction of income tax at the rate specified by law (currently 20%).

The Net rate is the rate paid after income tax has been deducted (currently 20%).

The Annual Equivalent Rate (AER) is a notional rate which illustrates what the gross interest rate would be if interest was paid and added to the account annually. AERs on an account which pays monthly interest assumes interest is added to the account at the end of each month during the year. In practice, the option to have interest added in this way is not available on our 90 Day Notice monthly interest option.

All the above rates are variable. Interest will be paid at the net rate after the appropriate rate of income tax (currently 20%) has been deducted, or gross on receipt of the required declaration form. Where interest is paid net, the income tax may be reclaimed if the amount deducted exceeds the investor's tax liability. Higher rate taxpayers will have to pay the extra due (the difference between tax deducted at 20% and the higher rate of 40%). Tax treatment or the rate of interest payable depends on your individual circumstances and may be subject to change in the future. Net rates are illustrative only and have been rounded to two decimal places.

If you have any queries regarding this notice, please contact your nearest branch or telephone our Customer Hotline on 0845 601 3344.

Open:

8.30am - 8.30pm Monday - Friday
9am - 6pm Saturday
11am - 5pm Sunday