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Interest rates

 

This is a summary of our latest interest rates. Where relevant, it includes variable rates that have already been announced but not yet come into effect.

Premium Bonds prize fund rate

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

The rate and the odds are variable


To see an estimate of the number of prizes of each value, see the Prize draw details section on our Prize checker page.

Prize checker

Variable rates

Direct ISA

Amount Interest rate Tax information
£1+ 1.00% tax-free/AER Tax-free

Direct Saver

Amount Interest rate Tax information
£1+ 0.95% gross/AER Taxable, paid gross

Income Bonds

Amount Interest rate Tax information
£500+ 1.00% gross/AER Taxable, paid gross

Investment Account

Amount Interest rate Tax information
£1+ 0.70% gross/AER Taxable, paid gross

Junior ISA

Amount Interest rate Tax information
£1+ 2.25% tax-free/AER Tax-free

Fixed rates

Guaranteed Growth Bonds

Amount Interest rate Tax information
£500+ 1.50% gross/AER
guaranteed for 1 year
Issue 62
Taxable, paid gross
£500+ 2.20% gross/AER
guaranteed for 3 years
Issue 56
Taxable, paid gross

Guaranteed Income Bonds

Amount Interest rate Tax information
£500+ 1.45% gross/1.46% AER
guaranteed for 1 year
Issue 62
Taxable, paid gross
£500+ 2.15% gross/2.17% AER
guaranteed for 3 years
Issue 56
Taxable, paid gross

Investment Guaranteed Growth Bonds

Amount Interest rate Tax information
£100+ 2.20% gross/AER
guaranteed for 3 years
Issue 1
Taxable, paid gross

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 rate investments.

Historical interest rates

Renewal rates for maturing fixed term investments

If you already have one of these investments that is about to mature, here are the Issues available when you renew your investment. See your maturity letter for details of what’s on offer to you.

Guaranteed Bonds

Investment Term Effective from Gross AER
Guaranteed Growth Bonds (taxable, paid gross) 1-year,
Issue 62
1 December 2017 1.50% 1.50%
2-year,
Issue 55
20 November 2017 1.70% 1.70%
3-year,
Issue 56
1 December 2017 2.20% 2.20%
5-year,
Issue 51
20 November 2017 2.25% 2.25%
Guaranteed Income Bonds (taxable, paid gross) 1-year,
Issue 62
1 December 2017 1.45% 1.46%
2-year,
Issue 55
20 November 2017 1.65% 1.66%
3-year,
Issue 56
1 December 2017 2.15% 2.17%
5-year,
Issue 51
20 November 2017 2.20% 2.22%

Saving Certificates

Investment Term Effective from AER
Fixed Interest Savings Certificates (Tax-free) 2-year, Issue 54 20 November 2017 1.55%
5-year, Issue 104 20 November 2017 2.15%
Index-linked Savings Certificates (Tax-free) 2-year, Issue 43 * 28 March 2016 Index-linking +0.01%
3-year, Issue 26 28 March 2016 Index-linking + 0.01%
5-year, Issue 53 28 March 2016 Index-linking + 0.01%

* Only available to customers renewing an existing 2-year Index-linked Savings Certificate.

Products no longer on sale

Children's Bonds

Children’s Bonds are no longer on general sale. The current lssue is only available to customers aged under 16 with maturing Bonds. The parent or guardian who looks after the Bond can renew up to the full value of the maturing Bond, but won’t be able to add to it.

Issue Term Effective from AER
Issue 37 5-year 24 September 2017 2.00% tax-free/AER

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
0.10% gross/AER Taxable, paid gross
B - non-interest bearing Gift Tokens
Savings Stamps
British Savings Bonds
0%

Definitions

Tax-free means that interest or prizes are exempt from UK Income Tax and Capital Gains Tax.
AER (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.
Gross is the taxable rate of interest without the deduction of UK Income Tax.
Index-linking means the value of your investment moves in line with inflation as measured by the Retail Prices Index (RPI). To check the RPI, visit the Office for National Statistics website at ons.gov.uk and search for RPI All Items Index.