AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added each year. All ISA interest is paid tax-free, which means it’s exempt from income tax. We pay all non ISA savings interest gross, which means no tax is deducted. It’s your responsibility to pay any tax due, based on your individual circumstances. Tax rules may change in future. Please be aware that products can be withdrawn at any time and without notice.
What happens on maturity?
Our 3 Year 66+ Member Income Bond transfers into an easy access account with a variable interest rate at the end of the fixed term, unless you tell us otherwise.
All of our other fixed rate bonds transfer into a 1 year fixed rate bond at the end of the fixed term, unless you tell us otherwise.