5 Year Fixed Rate Bond

Protect your savings with confidence. Benefit from a fixed interest rate when you open an account with us. We keep it simple, so you'll always have a clear picture of your earnings.

5 Year Fixed Rate Bond

Interest rate (AER*)

4.58% Fixed Gross

*AER stands for annual equivalent rate and illustrates the interest rate if it was paid and compounded once each year.

Minimum opening balance

£5,000

Term

5 years

Maximum opening balance

£250,000

At a glance

  • Your interest is calculated daily on the funds in your account and applied upon the anniversary
  • Make unlimited deposits within the first 14 calendar days after opening, after which the funding window closes
  • Withdrawals are not permitted until the end of the fixed term

Review our 5 Year Fixed Rate Bond - Issue 1 - summary terms
Account Name 5 Year Fixed Rate Bond – Issue 1
What is the interest rate? 4.58% AER/Gross
Interest is accrued daily at the rate on the account, applied on the anniversary of your account creation and paid at maturity.

Can Birmingham Bank change the interest rate?

The interest rate is fixed and will not change during the product term, which will be 5 years from the date of account opening.

No matter what happens to interest rates generally, we won’t change the rate during the fixed rate period.

What would the estimated balance be after 60 months based on £5,000 deposit?

£6,254.80

This would be the balance after 5 years if £5,000 was deposited, no further transactions were made, and interest was applied annually.

This illustration is just an example to help you compare accounts. It does not take into consideration any individual circumstances.

How do I open and manage my account?

Accounts can be opened in sole name only, joint accounts are not permitted.

You must:

  • be aged 18 or over,
  • be a UK resident and only tax resident in the UK; and
  • not be a US Person (this includes US citizens, residents, green card holders or taxpayers in respect of their worldwide income)

You can only open the Account online by visiting www.birminghambank.com

The Account cannot be used by businesses, clubs or charities or held in trust for anyone else.

Minimum account balance of £5,000
Maximum account balance of £250,000

Subject to your total savings balances held with Birmingham Bank being no more than £250,000 excluding accrued interest at any one time.

Once your Account is available to fund, you have a limited period of 14 calendar days in which you can make deposits into your Account.

You will not be able to make any further deposits into your Account once the 14 calendar day funding period is over.

Deposits into the Account must be from a UK nominated bank account held in your name by faster payment. Deposits will not be accepted by any other means.

Can I withdraw money? No withdrawals or closures are permitted during the fixed rate period, the Account will have a fixed duration of 5 years from the account opening date.

Account maturity

As your Account approaches its maturity, we’ll contact you at least 14 days before your Account reaches the end of the fixed rate period.

You’ll have the option to withdraw your funds to the nominated account or transfer them into a new account with us. If you do not let us know what you wish to do by the maturity date, the Account will revert to a variable rate account with no withdrawal restrictions and the interest rate will be confirmed to you.

Additional Information As this is a limited issue Fixed Rate Bond, we can withdraw it from sale at any time without notice.

Cancelling your Account

You cannot cancel or close this Account.
The Account is designed to be held for the entire term. There are only two
situations where early account closure or withdrawal is allowed:

  • If the Account holder dies
  • If we make any changes to this agreement that are to your disadvantage.

If this applies, please contact us using the details below.

How interest on your savings is taxed
Interest is paid gross without the deduction of income tax.

Definitions:

AER This stands for Annual Equivalent Rate and illustrates what the
interest rate would be if interest was paid and compounded once each
year.

GROSS The interest that you earn on money in your Account before
income tax is deducted.

Download our Fixed Rate Bond summary PDF
Fixed Rate Bond Summary PDF clicking here

Download our Savings Terms & Conditions PDF
Savings Terms & Conditions PDF clicking here

Ready to start your savings journey?

Apply online

You’ll need:

  • Valid photo ID a valid passport, driving licence or biometric residence permit
  • Mobile phone number
  • Valid email address
  • Your bank details The sort code and account number of your UK current account.
  • Aged 18 or over
  • UK resident only/tax resident in the UK
  • Not open to US citizens/residents/green card holders or taxpayers
  • Account in your name only, joint accounts are not permitted

Deposit funds

After your application:

  • We’ll run some ID verification checks
  • We’ll send you instructions on how to deposit your funds in one transaction into your new bond

 

Sit back and relax

  • Your rate is fixed for the duration you’ve chosen
  • We’ll contact you ahead of the Fixed Rate period ending

Apply now

Fixed Rate Bond FAQs

For how long and how often can I make deposits into my Fixed Rate Bond?

Once your Account is opened, you have 14 calendar days in which you can make any deposits into your Account. You will not be able to make further deposits once the 14 calendar day funding window is over

Does the Fixed Rate Bond account have a cooling off period?

The account doesn’t have a cooling off period, it’s important to ensure the account is suitable to your personal circumstances and that you will not need to withdraw your savings within the fixed rate period.

Can I withdraw from the Fixed Rate Bond account?

Once the account is open and funded you are not able to withdraw from this account until the end of the fixed rate period when the account matures, unless there are exceptional circumstances, e.g. the account holder has passed away.

When is my interest paid on my Fixed Rate Bond?

Interest is calculated daily on the funds in your account and applied upon the anniversary.

Will the interest change on my Fixed Rate Bond?

No, the interest rate is fixed and won’t change during your fixed rate period.

My Fixed Rate Bond account is due to mature, what are my options?

30 days before the fixed rate period on your account ends we’ll remind you of the maturity date and ask you to ensure your details with us are up to date. 14 days before your accounts maturity we’ll email you with the available options and ask you to inform us of your instructions.