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Interest rates

Taxable, paid net / fixed

		Term	Gross rate pa	AER	Net rate pa
		1-year Issue 44 Guaranteed rate for first year	4.65%	4.75%	3.72%
		3-year Issue 38 Guaranteed rate for first 3 years	4.65%	4.75%	3.72%
		5-year Issue 35 Guaranteed rate for first 5 years	4.65%	4.75%	3.72%

To find out how much income you would receive, go calculator.

For a summary of the rates for all our products, see interest rates.

Definitions

Gross is the taxable rate of interest without the deduction of UK Income Tax.

Net is the rate of interest payable after the deduction of UK Income Tax at the rate specified by law (currently 20.00%).

AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.