Fixed-term investments

Fixed-term investments that can be renewed at maturity:

  • Guaranteed Growth Bonds*
  • Guaranteed Income Bonds*
  • Index-linked Savings Certificates
  • Fixed-interest Savings Certificates

Fixed-term investments that cannot be renewed at maturity:

  • Children’s Bonds

Your clients’ options at maturity

Depending on the type of investment, clients can normally choose between renewing their fixed-term investment for another term or simply cashing in.

We’ll write to them before their Bond or Certificate matures, letting them know their options in more detail as well as the interest rates on offer if they want to renew. Whichever option they choose, clients should make sure we receive their instruction on at least two banking days before their investment is due to mature.

If renewing:

Your clients will receive confirmation of their renewed investment in their online account the day their investment matures, or a few days later if they still receive documents through the post.

If cashing in:

Your clients will normally receive the money in their bank account on the day their investment matures, or the next banking day if it matures on a weekend or bank holiday, but it could take a bit longer during very busy periods.

How we calculate index-linking

For our Index-linked Savings Certificates we now calculate the index-linking using the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI). This change was applied to all Index-linked Savings Certificates renewed from 1 May 2019.

*Important changes to Guaranteed Growth Bonds and Guaranteed Income Bonds

For clients holding our Guaranteed Growth or Guaranteed Income Bonds, there’s an important change that needs to be considered if they’re thinking about renewing their investment for another term.

Now, if a client chooses to renew their Bond for another term, they won’t be able to access their money until the Bond reaches the end of its new term. Previously, we allowed access to an investment before the end of a term but charged a penalty equal to 90 days' interest on any money being taken out early.

Clients do still have the right to cancel within 30 days of renewing their investment.

Therefore, these type of accounts might no longer be suitable for clients who could need early access to their money.

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