3 Year Fixed Rate Bond

Summary box

Account Name

3 Year Fixed Rate Bond.

What is the interest rate?

• 4.36%* Gross*/AER** (fixed) – Annual
• 4.28% Gross*/4.36% AER** (fixed) – Monthly

Interest is calculated daily. Interest can be paid annually or monthly. The term of the product is 3 years with annual interest paid on the anniversary of initial account funding. If you choose to have your interest paid monthly, interest payments will start one month after you fund the account.

If you choose monthly interest and have it paid to your nominated bank account, you will receive the monthly gross interest each month. If you choose to leave this interest in your savings account, the interest will be compounded over 12 months and will equate to the AER gross rate.

*Gross means interest is paid without tax being deducted.

**AER: AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if paid and compounded each year.

Any time an advertisement for a savings account shows an interest rate, it will also show the AER. This means you’ll be able to easily compare the return you can expect from your savings over time.

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?

£1136.59

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 open and manage your account online. We do not accept joint account applications.

You will need to pay in your initial deposit into your account within 14 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 during your application.

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

– be at least 18 years of age
– be living in the UK and a UK tax resident only
– hold a UK National Insurance number
– hold a valid unique email address
– hold a valid UK mobile number
– hold a UK current account in your name
– not be a US citizen (a resident, green card holder, or a US person on your worldwide income).

The maximum amount that you may hold 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 email you at least 14 days before the end of your fixed term, to provide you with your options to re-invest to another Hodge product or have your funds returned to your nominated bank account.

If you do not provide us with instructions on maturity of this product your funds will be automatically transferred to a low-interest holding account which is designed to be a temporary account until you decide what to do with your funds.

Additional Information

If, after 14 days of account opening, no money has been added to your account, then we will close the account.

If you change your mind about having the account you have a 14 day cooling off period which starts from the date the account was opened.

We will pay interest without tax deducted. The treatment of your account for tax purposes will depend on your individual circumstances and you may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please visit HMRC website www.gov.uk and search ‘Personal Savings Allowance’. The tax information provided is based on our understanding of current law and HMRC practice, both of which may change.

We use a payments provider called Modulr. 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.