Interest rates

Premium Bonds prize fund rate

Until November 2020 prize draw

Odds per £1 unit Annual prize fund interest rate Tax information
24,500 to 1 1.40% variable All prizes are tax-free

From December 2020 prize draw

Odds per £1 unit Annual prize fund interest rate Tax information
34,500 to 1 1.00% variable All prizes are tax-free

The rate and the odds are variable.

Variable rates

Direct ISA

Until 23 November 2020

Amount Interest rate Tax information
£1+ 0.90% tax-free/AER variable Tax-free

From 24 November 2020

Amount Interest rate Tax information
£1+ 0.10% tax-free/AER variable Tax-free

Direct Saver

Until 23 November 2020

Amount Interest rate Tax information
£1+ 1.00% gross/AER variable Taxable, paid gross

From 24 November 2020

Amount Interest rate Tax information
£1+ 0.15% gross/AER variable Taxable, paid gross

Income Bonds

Until 23 November 2020

Amount Interest rate Tax information
£500+ 1.15% gross / 1.16% AER variable Taxable, paid gross

From 24 November 2020

Amount Interest rate Tax information
£500+ 0.01% gross/AER variable Taxable, paid gross
If the interest rate stays at 0.01% gross (the rate from 24 November 2020), balances of less than £646.00 will not earn interest each month.

The way in which we calculate the interest on your balance is detailed in the Customer Agreement (Terms and Conditions) and we are only able to pay interest if this amount is 0.5 pence and above.


Investment Account

Until 23 November 2020

Amount Interest rate Tax information
£1+ 0.80% gross/AER variable Taxable, paid gross

From 24 November 2020

Amount Interest rate Tax information
£1+ 0.01% gross/AER variable Taxable, paid gross

Junior ISA

Until 23 November 2020

Amount Interest rate Tax information
£1+ 3.25% tax-free/AER variable Tax-free

From 24 November 2020

Amount Interest rate Tax information
£1+ 1.50% tax-free/AER variable Tax-free

Renewal rates for maturing fixed term investments

If you have one of our fixed term investments that is about to mature, we’ll contact you around a month before the maturity date to let you know your options and the current renewal rates.

If you choose to renew your investment for another term of the same length, you’ll receive the rate we quote in your letter, even if our rates go down before your maturity date. If you renew for a different term, you’ll receive the rate on offer on the date your investment matures. Bear in mind that this could be lower than the rate in the summary box we send you.

Historical interest rates

We are committed to keeping you informed and up to date on changes in the interest rates for our variable rate accounts and investments over at least the previous 12 months. We have also included the interest rates for our fixed term investments.

Historical interest rates

Residual Account

If we close one of our Bonds or Accounts and can't trace you to return your money, we will transfer your money to our Residual Account.

View the terms and conditions

Type Holdings Interest rate Tax information
A - interest bearing for £1+ Matured 6-month and 18-month terms of Guaranteed Growth Bonds and Guaranteed Income Bonds
Easy Access Savings Account
Ordinary Account
Deposit Bonds
Yearly Plan
SAYE
Treasurer's Account
Pensioners Guaranteed Income Bonds
Capital Bonds
0.03% gross/AER Taxable, paid gross
B - non-interest bearing Gift Tokens
Savings Stamps
British Savings Bonds
0%

Definitions

Tax-free AER Gross
means that interest or prizes are exempt from UK Income Tax and Capital Gains Tax. (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same. is the taxable rate of interest without the deduction of UK Income Tax.