One Year Guaranteed Bond

If the balance on your account falls below the minimum investment, the interest rate will be 0.50% gross p.a./AER*, your account may be closed, unless stated otherwise in the product description.

* Interest is paid gross. The gross rate is the contractual rate of interest payable before the payment of income tax. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year. Where interest is paid monthly, the AER is the rate which would be achieved if the interest was added to the account each month.

It is your responsibility to advise the appropriate tax authorities of any interest received. All rates are variable except the Fixed Interest Bonds. If no interest payment date is given on the application form, interest will be paid on 1 January.

The European Union Savings Tax Directive, effective 1 July 2005, applies to savings income earned on your account if you are a resident of an EU member state. You must elect how we are to deal with savings income from your account in the application form. Please note that should you fail to indicate your preference, we will deduct retention tax from interest earned on your account after 1 July 2005, in accordance with the Directive.

†Monthly interest paid on the first working day of the following month. Transferred monthly interest will be credited on the last day of the current month. Monthly interest can be paid to your UK or Channel Islands bank account or another Scarborough Channel Islands account.