3 Year Fixed Rate Bond

Product summary

Account Name

3 Year Fixed Rate Bond.

What is the interest rate?

• 4.35%* Gross*/AER** – Annual
• 4.27% Gross*/4.35% AER** – Monthly

Interest is calculated daily. Annual interest is paid on the anniversary of account opening. If you choose to have your interest paid monthly, interest will be paid from one calendar month following the receipt of your initial deposit through to the end of the term.

Glossary of Terms

• *Gross: Is the contractual rate of interest payable before the deduction of income tax at the rate specified by law. The payment can be made annually or monthly.
• **AER: AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if paid and compounded each year.

Can Hodge Bank change the interest rate?

No, the interest rate is fixed for the term.

What would the estimated balance be after 36 months based on deposit of £1,000?

£1136.26

This is based on one initial deposit of £1,000 into the account at the time it is opened, with no further deposits or withdrawals, with interest paid annually and added to the account. This projection is provided for illustrative purposes only and does not take into account the individual circumstances of a customer.

How do I open and manage my account?

You can open your account online. Accounts opened online can be managed via our internet banking. You will need to pay in your initial deposit to your account within 14 calendar days of account opening. The minimum deposit for a Fixed Rate Bond is £1,000 and the maximum is £1,000,000. All deposits in and out of your account must come from your nominated bank account, which you provide as part of the application process.

The easiest way to fund your account is via Bank Transfer. We use a payments provider called Modulr. When making a payment to your new Hodge account, you may notice a reference to Modulr Finance when setting up payee details. This allows you to confirm you’re paying the correct amount and means we receive your payment more quickly.

To be eligible for a Hodge savings account, you must:

• aged 18 years or older
• be a UK resident
• hold a UK National Insurance number
• hold a valid email address
• hold a valid UK mobile number
• hold a UK current account in your name.

The maximum amount that may be held by you with us across all products may not in aggregate exceed £5,000,000 but we may waive this limit at our absolute discretion.

Can I withdraw money?

You cannot make withdrawals during the fixed term. We will write to you, before the end of your fixed term, to provide you with your options.

Additional Information

We will pay interest without tax deducted. However, if the total amount of interest you earn exceeds your Personal Savings Allowance then you may have to pay tax directly to HMRC. For more information visit http://www.gov.uk and search ‘Personal Savings Allowance’.

There is a 14 day cooling off period which starts from the date when the application has been accepted.