• Annual Equivalent Rate 2.05% fixed until 18th July 2011 assumes account opened on 18th July 2010.

• Allows you to invest your savings for a fixed term at an interest rate that won't change.

• This account is available to Sole Traders, Partnerships, Limited Companies, Public Limited Companies, registered Charities, Housing Associations, Clubs or Associations.

• You need a minimum of £5,000 to open your account.

• Once opened you cannot add to your account, but you may open more than one bond.
• Withdrawals are not permitted during the fixed rate term. 
• Interest is calculated daily and is paid on the maturity date.
• Your bond will mature on 18th July 2011.
• This is a limited issue - the bond will be withdrawn when fully subscribed.

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

Tax
Interest will be paid at the net rate after the appropriate rate of income tax (currently 20%) has been deducted, or gross if declared on the application form. An account holder who is an individual may be liable to assessment to income tax at a higher rate upon the gross equivalent amount of interest received.

The receipt of interest gross by a company will not prevent that interest being liable to corporation tax. Where an account holder who is a company (as defined by S832(1) ICTA 1988) receives interest after deduction of income tax at the appropriate rate it will receive credit for the income tax suffered against its own liability to account for income tax on certain payments under schedule 16 ICTA 1988. In cases where such income tax exceeds the company’s liability so to account the company may under S.7(2) ICTA 1988 set the excess off against its corporation tax liability or where the amount of its corporation tax liability is less claim a repayment.

Tax treatment and rate of interest payable will depend on individual circumstances and may change in the future. Net rates are illustrative only and have been rounded to two decimal places.

You earn interest from the day you pay funds in to your account in cash, by cheque or transfer.