We’re reducing some of our savings interest rates
In February we made the difficult decision to reduce interest rates for some of our savings accounts with effect from 22nd April 2020.
Following the recent Bank of England base rate change, there will be a further reduction to some of our interest rates with effect from 24th June 2020.
If you’re applying for an account please see the Summary Box for current and new interest rates. If you are an existing savings customer you can see the current and new interest rates here:Interest rates for our current savings products
Bank of England Base Rate change
On 11th March 2020, the Bank of England Base Rate decreased from 0.75% to 0.25%.
On 19th March 2020, the Bank of England Base Rate decreased from 0.25% to 0.10%.
Britannia Fixed Rate Bonds
Earn a fixed rate of interest for either 1, 2 or 3 years depending on the term you choose.
- Open an account with anything between £1,000 and £1,000,000.
- Available as a sole account, joint account or ‘re’ account. What is a
Choose how to receive your interest: annually or monthly.
For annual interest, you can choose to add this to your bond account or pay it into a bank/building society account of your choice.
If you’d prefer your interest on a monthly basis, we will pay it into a bank/building society account of your choice.
You can use this bond if you want to earn interest on a lump sum.
It’s not possible to add to or withdraw from this account during the term of the product until maturity.
- Comes with a passbook.
This is a limited issue product and may be withdrawn without notice at any time.
This account reaches maturity at the end of the term you choose. On maturity, your money will be moved into an instant access account that pays a variable interest rate.
Summary Box for Britannia Fixed Rate Bond
- Please read this account’s key features before applying. For full details, you should also read its terms and conditions.
- The interest rates that apply to your account will depend on whether you have chosen a 1, 2 or 3 year Fixed Rate Bond. Your account passbook will contain the term and issue number of the fixed rate bond you have chosen.
Britannia Fixed rate bonds
What is the interest rate?
|1 year Fixed Rate Bond - issue 270||0.85%||0.84%||0.84%|
|2 year Fixed Rate Bond - issue 133||1.00%||0.99%||0.99%|
|3 year Fixed Rate Bond - issue 93||1.10%||1.09%||1.09%|
Interest is calculated daily. It can either be paid to you annually or monthly. Once you’ve chosen this you can’t change your mind during the term.
If you’re paid your interest annually you’ll receive it on the first Business Day^ after each anniversary.
If you’re paid your interest monthly you’ll receive it on the first Business Day^ of the following month. So, for example, you’d get January’s interest on the first Business Day^ in February.
Where can my interest be paid to?
Annual interest can either be paid into this account or another account of your choice (either with us or another provider).
Monthly interest will be paid to another account of your choice (either with us or another provider) but your final month’s payment will be added to this account.
Can Britannia change the interest rate?
No, the interest rate is fixed. It won't change until the account matures.
What would the estimated balance be at the end of the fixed term based on a £1,000 deposit?
|Initial deposit||Balance at the end of the fixed term|
|1 year Fixed Rate Bond - issue number 270||£1,000.00||£1,008.50|
|2 year Fixed Rate Bond - issue number 133||£1,000.00||£1,020.10|
|3 year Fixed Rate Bond - issue number 93||£1,000.00||£1,033.36|
|1 year Fixed Rate Bond - issue number 270|
|Balance at the end of the fixed term||£1,008.50|
|2 year Fixed Rate Bond - issue number 133|
|Balance at the end of the fixed term||£1,020.10|
|3 year Fixed Rate Bond - issue number 93|
|Balance at the end of the fixed term||£1,033.36|
We have worked this out assuming:
- You’ve chosen to receive your interest annually.
- You’ve chosen to add your interest to the account.
How do I open and manage my account?
Can I apply for this account?
To apply, you must be a UK resident.
- It can be opened as a sole or joint account.
- It can also be opened on behalf of someone else, such as a child.
How do I apply for this account?
You can apply:
- Over the phone
- In branch
Is there a minimum and a maximum balance?
You need at least £1,000 to open this account.
The maximum you can deposit in it is £1,000,000.
You’ve got 14 days from when we open your account, to pay in the minimum balance of £1,000. You can do this in one lump sum or through multiple payments. If after 14 days you haven’t met the minimum balance, we’ll close the account immediately and return any funds to you.
How do I make deposits into this account?
You can pay your initial deposit(s) into this account by cash, cheque or transfer from another account held with us or another provider.
- No further deposits are allowed after the 14 days from account opening, but you can have more than one Fixed Rate Bond.
How do I contact you to discuss this account?
By telephone or visiting a branch.
Can I withdraw money?
No - You can’t make withdrawals from this account until maturity so you should consider whether the amount you want to deposit leaves you with adequate emergency funds.
At the end of the fixed term, your account matures and your money will be put into a variable rate instant access account - unless you provide us with other maturity instructions. We’ll send you a letter when your fixed term is coming to an end. It’ll remind you of your maturity date and let you know what options are available to you (such as re-investing or withdrawing).
On maturity, you can access your money in branch or by post.
If you are or have previously been made bankrupt, you are eligible to apply.
This is a limited issue product and may be withdrawn without notice at any time.
Interest earned from this account will count towards any of your available personal savings allowance.
We will pay interest without deducting income tax. If you earn more interest than the amount permitted as tax free income, you will have to pay tax on the interest earned directly to HM Revenue & Customs. If you are not sure whether you will have to pay income tax, we recommend that you contact your local tax office or HM Revenue & Customs or visit gov.uk/hmrc/savingsallowance.
For more information about childrens’ savings, visit gov.uk/savings-for-children.
Any reference to tax is based on our understanding of current tax regulations which may change in the future and depends on your individual financial circumstances.
Gross - The gross rate of interest is the interest rate payable before any income tax is deducted (if you do pay tax).
AER - Stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
Business day - A Business Day is usually Monday to Friday (excluding bank holidays).
Apply for a Fixed Rate Bond
To apply, you need to be:
- A UK resident.
Approval is based on an assessment of your personal circumstances.
Ready to apply?
- All the information you’ve read so far (e.g. features, eligibility) can be found in the important documents below. We recommend that you save a copy of these important documents for future reference.
Please select your preferable Fixed Rate Bond:
Product Specific Terms and Conditions & Summary Box (which contains interest rates)Download PDF (3.25MB)
Britannia Savings General Terms & ConditionsDownload PDF (191KB)
Managing your Britannia Savings account (including Charges)Download PDF (521KB)
How we use your personal informationDownload PDF (978KB)
Financial Services Compensation Scheme Information Sheet and Exclusion ListDownload PDF (3.36MB)
- Any reference to tax is based on our understanding of current tax regulations which may change in the future and depends on the customer’s individual financial circumstances.
- smile reserves the right to decline or accept any application and/or deposit.
We’re part of The Co‑operative Bank, and we share the same ethical values too.
smile, Britannia and The Co‑operative Bank are trading names of The Co‑operative Bank plc, which is a member of the Financial Services Compensation Scheme (FSCS).
The Co‑operative Bank reserves the right to decline any application.
References to tax are based on our understanding of current tax regulations - these may change and depend on the customer’s individual financial circumstances.
You can subscribe to a smile/Co‑operative Bank/Britannia Cash ISA if you have not subscribed to another cash ISA with another provider in the current tax year.
When an account is ready to access, that means it’s matured. If you’ve taken out a fixed rate ISA for a year, it’ll reach maturity on a certain date the following year, like 31 July for example.
We offer 1, 2 and 3 year fixed rate bonds, depending on how long you'd like to lock away your money for.
You won't be able to make any withdrawals until the term ends. So if you're looking to keep your money locked in for a set period of time, a bond like this might be an option for you.
This stands for Annual Equivalent Rate. It shows you what the interest rate would be like if your interest was paid and compounded once a year.
The gross rate of interest is the interest rate payable before any income tax is deducted (if you do pay tax).
A ‘re’ account is a Fixed Rate Bond which you’ve applied for on someone else’s behalf. This is usually for people who don’t have their own current accounts yet, which is why we don’t include a minimum age limit on our Fixed Rate Bonds.
A passbook is a useful way to keep track of interest payments on your savings account. It can be used when you first open your bond.