Frequently Asked Questions about Bonds
Here are the questions we get asked a lot about our Bonds savings accounts. If you can’t find the answer you’re looking for please contact the team via Live Chat.
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What is a Bond?
A Bond is a type of savings account where you can invest your money for a set period of time – also known as a term. The Bonds that we offer have either 1-year or 2-year terms. At the end of the term, you get all of the interest on the amount you saved in the Bond paid gross.
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Can I withdraw from my Bond?
No, you are not able to withdraw from your Bond until it has matured into an Instant Access account. In the event of exceptional circumstances, we would close the account and return your money to you including interest. You can find out more by reading the Can I withdraw money? section on this product page.
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What happens when my Bond comes to an end?
We will contact you no later than 14 days before the end of your Bond term. When we do, we will provide information on some maturity products that you might be interested in to re-invest part or all of your money with us.
If you don’t want to invest your money in a new Bond, it will automatically mature into an Instant Access account. Find more information about our Instant Access account.
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How can I see how much I have in my Bond?
You can see the balance of your Bond at any time by logging onto our Mobile App or Bath Online. We will also send you a letter in the post shortly after your Bond is opened to confirm how much you have invested in your Bond.
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Do I have to pay tax on the interest I earn from my Bond?
Interest will be paid gross, which means the interest is paid without considering any tax payable. If you earn interest over your Personal Savings Allowance you will be required to pay any tax due directly to HM Revenue and Customs. If you would like to read more about your Personal Savings Allowance please visit the Government website.
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How will I get my money when my Bond matures?
If you don’t want to invest your money in a new Bond, it will automatically mature into an Instant Access account. At that stage, you can withdraw by faster payment, cash or cheque. Find more information about our Instant Access account and go to the Saving FAQ page for more information about withdrawals.
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How is interest calculated on my Bond?
Interest is calculated daily and paid to the account annually and on maturity.
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Can I add more money to my Bond after it's been opened?
No, you are not able to make further deposits into your Bond after it’s been opened.
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Can I have more than one type of these Bonds?
No, you are not able to have more than one of this type of Bond. However, if you meet the eligibility criteria, you can have one of each type of Bond, such as a 1-Year Fixed Rate Bond (Issue 1) and a 2-Year Fixed Rate Bond (Issue 1). You can find out more about whether you are eligible on the Bond product pages.