Fixed-rate savings accounts

Fixed-rate savings accounts

Enjoy the peace of mind offered by a set return on your savings

About fixed-rate savings

  • Fixed interest rate so you always know how much your savings will earn for the account term.
  • Save from £1 up to £5 million in your savings account per customer.
  • Your deposit should be for the full amount you wish to save as additional deposits are not allowed.
  • With our fixed-rate savings accounts you'll receive yearly interest paid on the anniversary of your deposit. Interest can be paid back into the account, to another AA Savings account or to another UK bank or building society account that accepts faster payments.
  • Withdrawals are allowed by post subject to a charge. The charge will depend on the remaining term of the account and is the equivalent of a number of days' gross interest and this can be between 90 and 270 days. The charge will be taken from the account balance and, depending on when the withdrawal is made may result in you getting back less than you originally deposited.
  • At the end of the term we'll write to you before your account matures, giving you the options to help you decide what to do with your savings. If we do not hear from you before your account matures we'll automatically re-deposit your funds into a variable rate easy access savings account of our choice.
  Yearly interest rate
Term Access Save from Balance Gross % Net % AER %
3 years Postal £1 £1+ 2.20 1.76 2.20

Open an AA 3 Year Fixed Rate Savings Account

Apply now

Rates correct at 3 December 2013

Download a fixed rate savings account brochure

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To view the pdf file you'll need Adobe Acrobat.

AER stands for annual equivalent rate and illustrates what the interest rate would be if interest was paid and compounded once a year. 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.

Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

Net rate is the contractual rate of interest payable after the deduction of income tax at the rate specified by law (currently 20%). If we deduct more tax than you have to pay this can be reclaimed from HM Revenue and Customs.

The deposit taker for AA Savings accounts is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628. Registered office: The Mound, Edinburgh, EH1 1YZ. Registered in Scotland No. SC327000.

17300.8

Interest Calculator

Use the calculator below to calculate the interest on your savings.  

Please enter an amount to save between £1 and £5,000,000

Amount to save
£
Interest rate
0%
Interest - Year 1
£
Interest - Year 2
£
Interest - Year 3
£
Closing balance
£

The calculation is for illustrative purposes only. It is based on the gross rates shown and assumes that the interest rate and rates of tax remain constant and the interest earned is paid back into the account.

Things you need to know

  • The account pays a fixed interest rate so you always know how much interest you will earn.
  • This account does not have a cancellation period.
  • To take full advantage of the offer, your deposit should be for the full amount you'd like to save. Additional deposits are not allowed.
  • Interest is calculated daily and credited to the account yearly on the anniversary of the deposit.
  • Interest can be paid back into this account, an AA Savings account, or another UK bank or building society account that accepts faster payments. If you choose to have your interest paid back into your Fixed Rate Savings Account, this may affect the interest rate on your account. Please see the account conditions for more information.

AER stands for annual equivalent rate and illustrates what the interest rate would be if interest was paid and compounded once a year. 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.

Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

Summary of our fixed-rate accounts

AA 3 Year Fixed Rate Savings Account

Account name AA 3 Year Fixed Rate Savings Account
Interest rates (AERs) Balances from £1+: 2.20% gross / AER
Rates are fixed for 3 years
Tax status Interest will be paid net after the deduction of income tax (currently 20%) unless you register your account to receive gross interest
Conditions for bonus payment There is no bonus available on this account
Withdrawal arrangements Withdrawals are allowed by post subject to a charge. The charge will depend on the remaining term of the account and is the equivalent of a number of days' gross interest as shown below. The interest will be taken from the account balance and, depending on when the withdrawal is made, may result in you getting back less than you originally deposited.
1 year or less: 90 days gross interest
2 years or less: 180 days gross interest
3 years or less: 270 days gross interest.
Access Postal

AER stands for annual equivalent rate and illustrates what the interest rate would be if interest was paid and compounded once a year. 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.

Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

Terms and conditions

AA Postal Fixed Rate Savings Accounts

Our agreement with you is made up of conditions in the General Investment Conditions (General Conditions) and the Postal Fixed Rate Savings Account (Account) Conditions below. If there is any overlap or conflict between the Account Conditions and the General Conditions, the Account Conditions apply. In these conditions 'we', 'our' and 'us' means Bank of Scotland plc – Birmingham Midshires is a division of Bank of Scotland.

The Account is a fixed rate savings account which is operated by post, and we treat this as not being a payment account. (We explain what a payment account is in condition 1 of the General Conditions. You will see from conditions 18 and 19 of those conditions that we may treat payment and non payment accounts differently if we make any changes to your conditions or interest rate).

1. Eligibility

1.1 To have an Account you must be a UK resident.

2. Opening your account

2.1 The Account can be a sole or joint account.

2.2 To open the Account you must pay in at least £1. We will only accept one payment into your account (please see condition 3.1 below). The maximum balance is £5 million for sole accounts, £10 million for joint accounts.

2.3 The Account term will run from the date we pay in your payment.

2.4 Your payment should be a cheque made payable to yourself, or a transfer from another savings account you have with AA Savings, for the full amount you wish to invest.

2.5 You must contact us by post to run this Account.

3. Putting money in your account

3.1 You can only make one payment into your Account. Once we have received your payment you will not be able to add any more money to your Account.

3.2 Each issue of the Account has a limited amount of money allocated to it. When that money is taken up, the issue will be closed to new deposits. Your payment into the Account must be by cheque while it is open to new deposits.

4. Taking money out of your account

4.1 If your Account has a term of less than 2 years when you open it, you cannot withdraw money from the Account.

4.2 If your Account has a term of 2 or more years when you open it, you can withdraw a minimum of £1, subject to conditions 4.3 and 4.4 below.

4.3 If you take money out of your Account which has a term of 2 or more years when you open it, you will pay a withdrawal charge. The withdrawal charge depends on the remaining term of the Account and is the equivalent of a number of days gross interest on the amount withdrawn as explained in the following table:

Length of remaining term at the time of withdrawal 1 year
or less
Up to
2 years
Up to
3 years
Up to
4 years
Up to
5 years
Withdrawal charge on the amount taken out of your Account – equivalent in days gross interest90 days180 days270 days320 days365 days

If your remaining term includes part of a year your withdrawal charge will be calculated based on the next whole year, eg 18–month term = the two–year withdrawal charge.

4.4 The rate used to calculate any withdrawal charge, will be the interest rate at the time the withdrawal is made.

4.5 Any withdrawal charge will be taken from your Account balance and may mean you get back less than you originally deposited.

4.6 When you ask us to withdraw money from your Account, we will do this by sending you a cheque.

4.7 On closure of your Account we will return your money plus any interest earned less any charges for withdrawals.

4.8 Condition 4.1 above (no withdrawals), conditions 4.2 – 4.5 (withdrawal charge), and condition 6.1 (no cancellation) will not apply if the Account holder dies.

5. Interest

5.1 The Account pays a fixed interest rate for a fixed term depending on the balance in the account. You can find out the current interest rates for your account by telephoning us on 0845 603 6302.

5.2 If you do make a withdrawal, this may affect the interest rate on your new Account balance.

5.3 Interest is calculated daily and is paid yearly.

5.4 If you have chosen to receive yearly interest paid back to your Account, this may affect the interest rate on your new Account balance.

5.5 Where the term of the Account is for 12 months or less, yearly interest must be paid back into the Account.

5.6 Interest will be paid net of income tax (currently 20%) unless you register your account to receive gross interest, where eligible. A separate registration is required for each account you hold.

6. No cancellation

6.1 This Account does not have a cancellation period.

6.2 If it has a term of less than 2 years when you open it, then you cannot withdraw your money until the end of the term. If it has a term of 2 or more years when you open it and you change your mind, you will have to pay a withdrawal charge to return your money (see condition 4.3).

7. Statement

7.1 If your Account has a term of a year or more when you open it, we will send you a yearly statement.

8. At the end of the fixed term

8.1 We will write to you at least 14 days before the end of the fixed rate term with some choices of account to put your money into, or the option of having it returned to you, at the end of the fixed term. If we do not hear from you, we will put your money into an instant access variable rate account. We will let you know before we do this.

Issue date 3 December 2013