Interest rates are fixed at the time of opening the account and will change automatically on the first and second year anniversary of you opening your account (or the next working day if your anniversary date is not a working day).
You can hold more than one Step Bond and Online Step Bond at any time.
You can hold multiple fixed term bonds, but the maximum amount of money you can hold in fixed term accounts with us at any one time (excluding interest) is £5,000,000.
You are able to manage your account via internet banking. After you open the account you have 10 days to fund your Step Bond and Online Step Bond, after this time you won't be able to deposit money.
We will write to you in advance at maturity asking for instructions about what you would like us to do with your Step Bond and Online Step Bond account. If available at maturity you can choose to pay your savings into another Step Bond account, or another account. If we don't hear from you, your account will automatically be transferred to a matured funds account.
No withdrawals are allowed after account opening.
Earlier closure is not possible
You can choose when and how to have your interest paid. This can be paid into a TSB current account, an eligible TSB savings account or an account with any UK bank that accepts faster payments.
Annual Equivalent Rate. AER illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different savings accounts. As every advertisement for a savings product, which quotes an interest rate, will contain an AER you will be able to compare more easily what return you can expect from your savings over time.
This means that credit interest is paid without income tax being deducted.
This is the contractual rate of interest payable where interest is exempt from income tax.