Fixed Rate Business Bonds

Our Fixed Rate Business Bonds are for businesses looking to lock money away for a certain amount of time.

Our Fixed Rate Business Bonds

Are you looking for a clever way to save cash left over in your business bank account at the end of the year? Putting excess money to work in a low interest rate environment can be challenging for business owners. But if you’ve got spare funds and you’re unlikely to use them for a while, our Fixed Rate Account for businesses offers a savvy savings solution. Offering a guaranteed sum at the end of the term, fixed rate business bonds can be a great way to boost your bottom line.

Fixed Rate Business Bonds

1 Month Fixed Rate Bond  (0.15%)

Account Name

1 Month Fixed Rate Bond

What is the interest rate?

0.15% Gross*/AER** – Monthly

Monthly interest is paid on the last working day of the month.

Can Hodge Bank change the interest rate?

No, the interest rate is fixed for the term.

Based on £1,000 initial deposit, what would the estimated balance after 12 months?

£ 1,001.50 This illustrative example assumes one initial deposit of £1,000, with no further additions with interest paid annually and added to the account. This projection is provided for illustrative purposes only & does not take into account the individual circumstances of a customer.

How do I open and manage my account?

You can open your account by post.

Accounts opened by post can be managed by post and by telephone.

The minimum deposit for a Fixed Rate Account is £1,000.

For deposits made by cheque, interest is calculated from the second banking day on which the cheque is credited to the account. Cheques are cleared in 2 banking days using the Image Clearing System. This system allows banks to clear a digital image of the cheque rather than the original paper cheque.

Your business must be UK based.

All your directors and significant owners of your business must be aged 18 or older, resident in the UK and only tax resident in the UK.

The maximum amount that may be held by you with us across all products may not in aggregate exceed £1,000,000 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

When you open an account, you have 10 working days to transfer any funds in to that account. If, after 10 days, no funds have been received or the funds held in the account do not meet the minimum balance, then we will close the account and return any money held in the account.

We will pay interest without tax deducted.

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.

3 Month Fixed Rate Bond  (0.40%)

Account Name

3 Month Fixed Rate Bond

What is the interest rate?

0.40% Gross*/AER** – Monthly

Monthly interest is paid on the last working day of the month.

Can Hodge Bank change the interest rate?

No, the interest rate is fixed for the term.

Based on £1,000 initial deposit, what would the estimated balance after 12 months?

1,004.00 This illustrative example assumes one initial deposit of £1,000, with no further additions with interest paid annually and added to the account. This projection is provided for illustrative purposes only & does not take into account the individual circumstances of a customer.

How do I open and manage my account?

You can open your account by post.

Accounts opened by post can be managed by post and by telephone.

The minimum deposit for a Fixed Rate Bond is £1,000.

For deposits made by cheque, interest is calculated from the second banking day on which the cheque is credited to the account. Cheques are cleared in 2 banking days using the Image Clearing System. This system allows banks to clear a digital image of the cheque rather than the original paper cheque.

Your business must be UK based.

All your directors and significant owners of your business must be aged 18 or older, resident in the UK and only tax resident in the UK.

The maximum amount that may be held by you with us across all products may not in aggregate exceed £1,000,000 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

When you open an account, you have 10 working days to transfer any funds in to that account. If, after 10 days, no funds have been received or the funds held in the account do not meet the minimum balance, then we will close the account and return any money held in the account.

We will pay interest without tax deducted.

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.

6 Month Fixed Rate Bond  (0.50%)

Account Name

6 Month Fixed Rate Account/Bond

What is the interest rate?

0.50% Gross*/AER** – Monthly

Monthly interest is paid on the last working day of the month.

Can Hodge change the interest rate?

No, the interest rate is fixed for the term.

Based on £1,000 initial deposit, what would the estimated balance after 12 months?

£1,005.00 This illustrative example assumes one initial deposit of £1,000, with no further additions with interest paid annually and added to the account. This projection is provided for illustrative purposes only & does not take into account the individual circumstances of a customer.

How do I open and manage my account?

You can open your account by post.

Accounts opened by post can be managed by post and by telephone.

The minimum deposit for a Fixed Rate Bond is £1,000.

For deposits made by cheque, interest is calculated from the second banking day on which the cheque is credited to the account. Cheques are cleared in 2 banking days using the Image Clearing System. This system allows banks to clear a digital image of the cheque rather than the original paper cheque.
Your business must be UK based.

All your directors and significant owners of your business must be aged 18 or older, resident in the UK and only tax resident in the UK.

The maximum amount that may be held by you with us across all products may not in aggregate exceed £1,000,000 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

When you open an account, you have 10 working days to transfer any funds in to that account. If, after 10 days, no funds have been received or the funds held in the account do not meet the minimum balance, then we will close the account and return any money held in the account.

We will pay interest without tax deducted.

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.

1 Year Fixed Rate Bond  (0.75%)

Account Name

1 Year Fixed Rate Bond

What is the interest rate?

0.75%  Gross*/AER** – Annual
0.75% Gross*/AER** – Monthly

Annual interest is paid at maturity.  Monthly interest is paid on the last working day of the month.

Can Hodge change the interest rate?

No, the interest rate is fixed for the term.

Based on £1,000 initial deposit, what would the estimated balance after 12 months?

£1,007.50 This illustrative example assumes one initial deposit of £1,000, with no further additions with interest paid annually and added to the account. This projection is provided for illustrative purposes only & does not take into account the individual circumstances of a customer.

How do I open and manage my account?

You can open your account by post.

Accounts opened by post can be managed by post and by telephone.

The minimum deposit for a Fixed Rate Bond is £1,000.

For deposits made by cheque, interest is calculated from the second banking day on which the cheque is credited to the account. Cheques are cleared in 2 banking days using the Image Clearing System. This system allows banks to clear a digital image of the cheque rather than the original paper cheque.
Your business must be UK based.

All your directors and significant owners of your business must be aged 18 or older, resident in the UK and only tax resident in the UK.

The maximum amount that may be held by you with us across all products may not in aggregate exceed £1,000,000 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

When you open an account, you have 10 working days to transfer any funds in to that account.  If, after 10 days, no funds have been received or the funds held in the account do not meet the minimum balance, then we will close the account and return any money held in the account.

We will pay interest without tax deducted.

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.

What is a fixed rate business bond?

A fixed rate business bond is a type of business savings account that allows companies to set aside a lump sum of money for a specific amount of time. You won’t be able to access the money during the set fixed term, but you might get a higher interest rate than other Hodge savings options, with a guaranteed return on your money.

It’s important to consider carefully if you can afford to lock money away for a fixed period of time. Even if you’ve got plenty of surplus cash on hand, make sure your future financial commitments won’t be affected by your decision to make a lump sum of money inaccessible for a while. It’s always best to invest in a combination of savings accounts so you can take advantage of options offering you a good return on investments, such as fixed rate business bonds, as well as those allowing you easier access to money such as notice accounts for business. This way you’re sure to keep available money growing, while preserving your ability to withdraw funds when your business needs it the most.

Who can open a fixed rate business bond account?

Our fixed rate bonds are available for businesses and commercial enterprises that want to earn interest by placing their funds in a savings account for a fixed term. With a minimum deposit of £1,000 and the shortest fixed term of one month, any company with surplus cash can take advantage of fixed rate business bonds.

What are the benefits of fixed rate business bonds

If you’re still not sure how your company will benefit from investing in fixed rate business bonds, here are a few advantages to keep in mind:

  • You know exactly how much you’ll be earning 

Fixed rate business bonds take the guessing out of investing. With these business bonds you’ll always know where you stand, so you can be confident you’re growing your capital in a safe and profitable way. At any given point you’ll know exactly how much interest your money is earning and the total sum you’ll get at the end of the fixed term.

  • Solutions that suit your business needs 

Every business is different and there’s more than one way to put available funds to good use. This is why it’s important to make a choice that suits your business financial situation. With both longer- and shorter-term fixed rate business bonds available, you can select the option that meets your requirements and works best for your company.

  • An investment you can trust to be safe 

Eligible deposits up to £85,000 are protected by the Financial Service Compensation Scheme (FSCS). So, you can have peace of mind knowing that your investment is protected.

Protecting your money

Your eligible deposits with Hodge Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme.

Find out more