| Annual Interest | 12 months from account opening: no lower than 0.50% below Base Rate | 12 months from the first anniversary of account opening: no lower than Base Rate | 12 months from the second anniversary of account opening: at least 0.50% above the Base Rate | 12 months from the third anniversary of account opening: at least 1.00% above Base Rate | From the fourth anniversary of account opening until 31 December 2012: at no lower than 1.50% below Base Rate | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| AER/ Gross % | Net % | AER/ Gross % | Net % | AER/ Gross % | Net % | AER/ Gross % | Net % | AER/ Gross % | Net % | |
| Amount Invested £1+ | 1.00 | 0.80 | 0.50 | 0.40 | 1.00 | 0.80 | 1.50 | 1.20 | 0.10 | 0.08 |
*Interest rates quoted for future years are for illustrative purposes only. Based on a Bank of England Base Rate of 2.00%.
Explanation of terms
AER means 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 offers.
Net rate is the rate payable after the deduction of lower rate tax (which may be reclaimed by non-taxpayers on completion of an Inland Revenue R85 form). As the rate of tax may vary, the net rate is given for illustration only and is rounded to two decimal places.
Gross rate means that credit interest is paid without income tax being deducted. You can receive your interest paid gross if you are a non-tax payer and have completed an Inland Revenue R85 form.
