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variable rate investment bond 1

Do you have a lump sum which you are looking to invest for up to two years?

THIS PRODUCT IS NOW A CLOSED ISSUE

Click here for the summary box - key product information for this savings account.

If you like the idea of investing a lump sum for a set period of time, then take a look at our 2 year variable investment bond 1. You can open a bond with £5,000 and whatever your balance (up to a maximum of £50,000) you will earn the same attractive rate of interest.

This variable rate investment bond has been designed to run until 31 May 2014. The interest rate on this bond is variable which means the interest rate can go up or down during the term of the bond. Of course, sometimes the unexpected happens and if you do need to access your money, you can make a withdrawal or close the bond, but you will lose interest on the amount you withdraw.

If you would like a regular income from your investment, you can choose to have your interest paid monthly. To give you easy access, we can pay your interest into another of our savings accounts or direct into your bank account.

So if you want to invest your lump sum and then sit back and relax, take a closer look at our variable rate investment bond 1.

What are the full terms and conditions?

Account name:
Variable rate investment bond 1
Maturity date:
31/05/2015
Minimum amount to open the account:
£5,000.00
Maximum Investment:
£50,000.00
Investment conditions:
The minimum investment in the Variable Rate Investment Bond is £5,000.  The maximum investment in the Variable Rate Investment Bond is £50,000. Additional investments into the bond may be allowed providing the bond is a current issue account and subject to the maximum investment limit mentioned above not being exceeded.
Withdrawal conditions:
Part withdrawals from the bond are allowed, (subject to the minimum balance of £5,000 remaining in the bond following the withdrawal). Any such part withdrawal will be subject to a loss of 180 days gross interest on the amount withdrawn. Early closure is allowed subject to an interest charge equivalent to 180 days loss of gross interest at the rate applicable to the bond on the balance held.
Interest payment:
Interest is calculated on a daily basis and may be paid on an annual or monthly basis. Annual interest can be credited to the bond on 31 May, transferred to another appropriate Darlington Building Society account or a bank account. Monthly interest can be transferred to another appropriate Darlington Building Society account or a bank account.
Eligibility:
The Bond may be held in single or joint names, but the maximum investment in a bond remains at £50,000.
Maturity:
The availability of the bond following the maturity date, 31 May 2014, will be reviewed by Darlington Building Society prior to the maturity date and may be withdrawn by us giving you 30 days’ notice.
Notes:
As this Variable Rate Investment Bond is a Limited Edition it may be closed to investors by the Society at any time without notice.

The interest rate is variable and can go up or down during the term of the bond at the discretion of the Society.

Current interest rates

Amount Gross * Gross AER # Net *
£5000+ 1.75% 1.75% 1.40%

Please make sure that you have read and fully understand the full terms and conditions before you decide to open this account. If you need any further information please telephone 01325 366366, email sales@darlington.co.uk or contact your local branch.
You should also read our general terms and conditions which you can download to the left of this page and which also form part of the terms and conditions of this account.
We are part of the Financial Services Compensation Scheme.
* - The gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law, and the net rate is the rate of interest which would be payable after allowing for the deduction of income tax at the specified rate. Interest will be payable net after the lower rate of income tax has been deducted or, subject to the required certification, gross. Where the tax deducted exceeds an investor's tax liability (if any), a claim may be made to the Inland Revenue for repayment of tax. For individuals whose income falls within the lower or basic rate bands, the tax deducted will match their liability to tax on the interest and they will have no more tax to pay on it. Individuals who are liable at a higher rare of income tax will have to pay  additional tax on the interest to cover the difference between the tax deducted and the higher rate of tax due.
# - A.E.R. stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added once each year.