Here are the questions we are often asked about our Fixed Rate Bonds savings accounts. If your question is not answered here, please do get in touch with us and let us know. You contact the team via Live Chat.
A Fixed Rate Bond is a type of savings account that pays a fixed rate of interest for a set period of time – also known as a term. Fixed Rate Bonds tend to pay a higher interest rate than instant access accounts, but most will not let you access your money until the end of the chosen term, meaning that money will be tied in for that period.
Fixed Rate Bonds pay a fixed rate of interest on the money deposited, so you will know what return you will receive at the end of the term. Our Fixed Rate Bonds have a term of either one year or two years and you can only withdraw your money at the end of the chosen term — which is also known as maturity.
Fixed Rate Bonds, along with all eligible deposits with Bath Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. This limit is applied to the total of any deposits you have with Bath Building Society. Any deposits you hold over the £85,000 limit are not covered.
See the FSCS guide to how your money is protected for further information, or visit www.fscs.org.uk.
Fixed Rate Bonds tend to pay a higher interest rate than more accessible variable rate accounts. However, in return for a higher interest rate, you agree to not access your money within the term.
So, it is important to make sure you will not need to access your money within the term before proceeding.
You will also need to consider that if interest rates were to increase generally within the term, you will be locked into the fixed rate and not be able to take advantage of better returns elsewhere.
If you meet the eligibility criteria, you can have one of each type of Fixed Rate Bond, such as a one year and a two year bond. However, you cannot have more than one of each Fixed Rate Bond currently offered.
You can find out more about whether you are eligible on the Fixed Rate Bond product pages.
Interest will be paid gross, which means the interest is paid without considering any tax payable. If you earn interest over your Personal Savings Allowance, you will be required to pay any tax due directly to HM Revenue and Customs.
If you would like to read more about your Personal Savings Allowance, please visit the Government website.
As with any cash savings account, you will not lose money on a Fixed Rate Bond provided you keep within the Financial Services Compensation Scheme (FSCS) limit of £85,000 per person.
As your money is tied in for the term, you may potentially miss out on higher interest rates if savings rates rise in that time period.
The key benefits for choosing a Fixed Rate Bond include:
• A guaranteed interest rate for the term of the Fixed Rate Bond
• Different term options to suit your needs and circumstances
• Peace of mind that your money is covered for up to £85,000 by the Financial Services Compensation Scheme
The disadvantages to be aware of include:
• No access to your money for the term of the Fixed Rate Bond
• You will not be able to take advantage of increased savings rates by switching to a better deal
Yes, you can open a Fixed Rate Bond with Bath Building Society as a joint account. It is important to consider the terms of the account and any tax implications before proceeding.
Depending on the provider, a Fixed Rate Bond is sometimes referred to as a fixed term deposit but would work in the same way.
A fixed term deposit can also refer to the money that you use to open a Fixed Rate Bond.
We will contact you no later than 14 days before the end of your fixed term. When we do, we will provide information on some maturity products that you might be interested in to re-invest part or all of your money with us. If you don’t want to invest your money in a new product, it will automatically mature into an Instant Access account.
Find more information about our Instant Access account on our product page.
If you meet the eligibility criteria, you can have one of each type of Fixed Rate Bond, such as a one year and two year bond. However, you cannot have more than one of each Fixed Rate Bond currently offered.
You can find out more about whether you are eligible on our Fixed Rate Bond product pages.
Fixed Rate Bonds, along with all eligible deposits with Bath Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. This limit is applied to the total of any deposits you have with Bath Building Society. Any deposits you hold over the £85,000 limit are not covered.
See the FSCS guide to how your money is protected for further information, or visit www.fscs.org.uk.
To apply for a Fixed Rate Bond, you will need to complete an Application Form, which can be found on the bottom of our Fixed Rate Bond product page, or you can request one from our Customer Service Team at savings@bibs.co.uk. You can also pick up a form from one of our branches.
Once completed and signed, you can return it to us by post or in branch, along with your opening deposit.
For those able to lock their money away for a set term, Fixed Rate Bonds offer a guaranteed return for a set period of time.
The advantage of knowing what interest you will receive for a chosen term is attractive to many, providing they carefully consider the potential disadvantages before proceeding.
No, once you have made your opening deposit you are not able to add any further money into your Fixed Rate Bond.
Interest is calculated daily and paid to the account on maturity for a 1 Year Fixed Rate Bond and added to the account annually and then on maturity for a 2 Year Fixed Rate Bond.
A Fixed Rate Bond can be opened with Bath Building Society by UK residents over the age of 18. Accounts can be opened in sole or joint names.
No, you are not able to withdraw from your Fixed Rate Bond until it has matured into an Instant Access account at the end of the fixed term. In the event of exceptional circumstances, we would close the account and return your money to you including interest.
A Fixed rate bond can be closed in exceptional circumstances, which includes the death of the account owner. However, account closure would follow completion of the administration required in the event of death. For more information on this, please read our Bereavement Guide.
