3 Year fixed term deposit account

Savings

Our 3 Year Fixed Term Deposit Account offers your clients a fixed rate of return on their savings for the next three years. You will earn 0.01% annual trail fee (paid quarterly) based on your total client balances.

Key benefits

  • Fixed interest rate during the term and offer period.
  • Accounts available in issues.
  • Minimum deposit of £10,000.
  • No additional deposits or withdrawals.
  • Not linked to any investment products.
  • Interest paid monthly, quarterly or annually.
  • Annual trail fee of 0.01% (paid quarterly).
  • Available to roll into a new fixed-term deposit account at maturity.
  • Postal applications only – to secure the interest rate you’re applying for we’ll need to receive the application before the start date.

Download the application form

Take the first step toward setting up a 3 Year Fixed Term Deposit Account for your client.

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Key details

Eligibility
  • Minimum deposit of £10,000.
  • Maximum deposit of £5 million.
  • Joint accounts available.
Access
  • Access is normally only at the maturity date.
  • We'll write to your client before the account matures to ask what they'd like us to do with their money.
Deposits
  • The deposit can be made by cheque or internal transfer from an existing Scottish Widows Bank account.
  • Cheques must be from an account held in your client's name (building society cheques need to be verified by issuing branch).
  • No additional deposits can be made.
  • Third-party cheques are not permitted
Withdrawals
  • No partial withdrawals are permitted throughout the three year term.
  • Early access to funds is permitted on account closure, when the whole balance of the Fixed Term Deposit Account will be repaid minus a charge equal to 200 days’ interest. We will work this out at the rate at which we pay interest on your fixed rate deposit account. We will take this amount from the interest we owe you on your account, which we have not yet paid. If there is not enough interest that we have not yet paid, we will take this amount from your Fixed Term Deposit Account capital. You may therefore get back less than you first invested.
  • Instructions can be given by telephone or post.
  • On account closure, transfers from accounts are free of charge provided there is one business day's notice. Same-day transfer is available if the request is made before 3.40pm and is subject to an administration charge, currently £25.
Maturity of the three year term

At least 30 days before the end of the three year term, your client will receive a letter advising of their options. These are:

  • roll over the current term deposit to the one available at the time of maturity
  • transfer money to another savings account with Scottish Widows Bank
  • transfer money to the nominated external account.

If we don't receive any instruction from your client, the money will automatically be rolled over to a Scottish Widows Bank Variable Rate Account with interest payable at the Bank of England Base Rate. 

Interest payments
  • Interest will accrue at the fixed rate from the start date and will be paid monthly, quarterly or annually to either another Scottish Widows Bank deposit account or a nominated external bank or building society account held in your client's name.
  • The fixed rate of interest, determined prior to the specified issue being promoted, will apply from when the account is opened until maturity.
  • The interest earned during the offer period will be paid to your pre-advised account at the end of the offer period. The interest earned after the end of the offer period will be paid away monthly, quarterly or annually to either another Scottish Widows Bank account or a pre-advised account. Where interest is paid monthly it will be paid on the first business day of the month.
  • At the end of the term your client will receive a closing statement and a Certificate of Interest.
Tax
  • Interest will be paid gross and your client will be responsible for paying any tax due to HMRC.

Other information you need

  • Transfer all or some of the maturity balance into a Fixed Term Deposit Account for another three years:

    • earn a fixed rate of interest for another three years
    • deposit £10,000 to £5,000,000
    • add to your maturity balance if your client would like to deposit more (additional deposits must be made during the applicable offer period, as advertised on the account interest rates pages).

    We regularly launch new issues of our Fixed Term Deposit Accounts, which are available for a limited time only. You should therefore only visit the account pages after the maturity date of the existing Fixed Term Deposit Account, to ensure the rate you see advertised is the rate your client will receive if they apply for this option. The interest rate advertised before the existing account has matured may be different to the rate your client would receive, as the funds are reinvested after the maturity date.

    Maturity options for Fixed Term Deposit Accounts

    When your client's  Fixed Term Deposit Account matures, they'll need to decide what they'd like to do with the proceeds. If they'd like to withdraw some or all of the balance on the maturity date, we can arrange this for them.

    If your client needs more time to decide, on the maturity date we’ll automatically transfer the balance into the Scottish Widows Bank Maturity Base Rate Tracker for personal funds. This account allows quick and easy access, and pays interest at the Bank of England Base Rate  Look at the Terms and Conditions for this account (PDF)

    We'll write to you and your client at least 30 days before the maturity date.

    Note: While we can accept your instruction to open a new account before the maturity date, your client’s funds can’t be transferred until after the maturity date, without incurring any applicable penalty. 

  • Our 3 Year Fixed Term Deposit Account is ideal if your client:

    • wants to earn a fixed rate of interest on their savings
    • doesn't need access to it for the next three years
    • wants a regular source of income, because interest can be paid to your client's nominated bank account on a monthly, quarterly or annual basis.
  • Interest Rate

    • The fixed rate of interest, determined prior to the specified issue being promoted, will apply from when the account is opened until maturity.
    • Accounts can be opened before the start date when each issue is launched.
    • The interest earned during the offer period will be paid to your pre-advised account at the end of the offer period. The interest earned after the end of the offer period will be paid away monthly, quarterly or annually to either another Scottish Widows Bank account or a pre-advised account. Where interest is paid monthly it will be paid on the first business day of the month.

    Benefits for you

    • Annual trail fee of 0.01% paid quarterly based on total average clients' balances.
    • No cross-sell guarantee.

    Benefits for your client

    • The interest earned could provide a regular source of income.
    • Not linked to any investment products
    • The fixed rate of interest, determined prior to the specified issue being promoted, will apply from when the account is opened until maturity.
  • Current interest rates and charges

    The 3 Year Fixed Term Deposit Account offers an interest rate that is fixed for 3 years.

    Issue 73: Offer period 08/11/2018 – 19/12/2018 | Maturity date: 20/12/2021

    Balance Interest frequency Gross/AER Charges
    £10,000–£5,000,000  Annually 0.80%

    Withdrawals by CHAPS transfer to another UK account - £25. 

    We may charge for duplicate statements - £5.

    Quarterly 0.80%
    Monthly 0.80%

    Interest payment periods

    Interest will be paid monthly, quarterly or annually to either another Scottish Widows Bank deposit account or an external bank account held in your name. Please note that the contractual rate of interest on your account will be lower than the annual gross interest rate if you have interest paid monthly or quarterly.

    Definitions

    AER – Stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. (As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time).

    Gross – Gross rate means that we will not deduct tax automatically from interest payments. The account holder is responsible for paying any tax due to HMRC.

    The AER advertised is based on interest paid gross and capitalised to the account once a year – please note that other interest payment periods are available and the actual interest rate on your account will be lower if you have interest applied more frequently, but when compounded will equal the AER.

    Key product information for our Savings Account(s)

    Account name
    3 Year Fixed Term Deposit Account
    Interest rates
    (AERs)

    The fixed rate of interest, determined prior to the specified issue being promoted, will apply from when the account is opened until maturity. The interest earned during the offer period will be paid to your pre-advised account at the end of the offer period. The interest earned after the end of the offer period will be paid away monthly, quarterly or annually to either another Scottish Widows Bank account or your pre-advised account. Where interest is paid monthly it will be paid on the first business day of the month.

    Interest must be paid away to either another Scottish Widows Bank savings account or an external bank account held in your name.

    Interest can be paid monthly, quarterly or annually. Please see above for current interest rate information.

    Tax status
    Interest will be paid gross and your client will be responsible for paying any tax due to HMRC.
    Conditions for bonus payment
    No bonus payment applies to this account.
    Withdrawal arrangements

    No partial withdrawals allowed. If you need to withdraw your money before the end of the term, you can close your Fixed Term Deposit Account, however you will be charged an amount equal to 200 days' interest.

    We will work this out at the rate at which we pay interest on your Fixed Term Deposit Account. We may take this amount from the interest we owe you on your account which we have not yet paid. If there is not enough interest that we have not yet paid we will take this amount from your Fixed Term Deposit Account. You may therefore get back less than you first invested.

    On death of customers before the end of the term, the initial capital plus the full amount of accrued interest will be returned.

    Access
    Access is normally only at the end of the agreed term. We'll write to clients before the account matures to ask what they'd like us to do with their money.
    • 0.01% annual trail fee, paid quarterly.
    • Simple registration
  • Before you apply [PDFs]

    Before applying you should ensure your client has been provided with a copy of the account  Personal Savings Account Conditions (PDF) and Interest Rates and Charges Sheet (PDF) You must also provide a copy of our FSCS Information Sheet (PDF)

    Postal Application

    Please complete the application form (PDF) and return it to:

    Scottish Widows Bank
    PO Box 12757
    67 Morrison Street
    Edinburgh
    EH3 8YJ

    Register your firm to submit savings business with Scottish Widows Bank.

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