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The 1 Year Business Savings Bond (Issue 18)

Secure your business savings for one year and gain access to a top rate of interest.

Notice Period Interest Payable Interest Rate AER Fixed Next Steps

 

 

AER stands for annual equivalent rate. It shows what the interest rate would be if interest was paid and compounded once each year.

A guaranteed return on your business savings

If you don't need access to your business cash for at least one year, you can earn a guaranteed rate of interest by securing it away for the fixed period.

  • Competitive 4.75% AER 
  • Minimum balance of £10,000
  • Maximum balance of £1m
  • Pay in and out through a nominated UK Bank or Building Society current account in your business's name 
  • Unlimited top-ups in first 14 days (up to £1m)
  • No withdrawals allowed during the period
  • Cancel in the first two weeks if it is not right for you
  • Reinvestment and withdrawal options at maturity
  • Apply online now in around 15 minutes.

Summary Box

Account name 1 Year Business Savings Bond
What is the interest rate?
  • Where the balance on the account is £10,000 or more the interest will be 4.75% Gross/AER fixed.
  • AER stands for annual equivalent rate and shows what the interest rate would be if interest was paid and compounded each year.
  • Interest is calculated daily and paid into your account either monthly or annually, depending on the option you select at account opening.
Can Redwood Bank change the interest rate?
  • No, the interest rate is fixed for the duration of the term.
What would the estimated balance be after 12 months based on a £10,000 deposit?
  • Based on the interest rate of 4.75%, an account with £10,000 will have a balance of £10,475 after a year.
  • This projection is for illustrative purposes only and does not take into account individual circumstances.
  • This projection is based on receiving £10,000 on the day of the account opening which remains invested for 12 months.
How do I open and manage my account?
  • This product is available to UK-based businesses (i.e. limited companies, partnerships, LLPs and sole traders, charities, associations, clubs, societies and parish/local councils).
  • You can apply for an account online or by post by making the first payment of at least £10,000. The account will start operating and earning interest on the working day we receive funds.
  • The product is strictly limited and can be withdrawn at any time.
  • Once we have confirmed with you that your account has been opened, you will have a maximum funding period of 14 days to fund your account.
  • Within the funding period you may fund your account with multiple deposits from your nominated account either electronically or by cheque up to a maximum of £1 million. If your account exceeds the maximum limit, the funds will be returned to your nominated account.
  • Each customer can hold a maximum of £2 million across all savings accounts held with Redwood Bank.
  • Once the funding period has ended or if the account is no longer available, you will be unable to make further deposits.
  • You can appoint up to 4 authorised users.
  • All payments need to be made into and from your nominated account.
  • You can manage your account in writing, over the phone or using your secure login details, which are unique to you.
  • If you’d prefer not to have online access, please let us know.
Can I withdraw money?
  • You cannot make withdrawals or close the account before the end of the term of the bond.
  • We will contact you in writing at least 21 days before the maturity date outlining your options on maturity and whether you would like to:
  • Transfer your money in full, from the fixed rate bond into your nominated account
  • Re-invest your money in full to a new bond issue with us (subject to availability at the time)
  • Transfer your money in full to another savings account with us
  • We will then issue an additional email reminder at least 14 days before the maturity date, again outlining the options.
  • If we do not receive instructions from you at least two Working Days before the maturity date of your Business Savings Account, we will automatically transfer your existing Business Savings Bond proceeds (including the initial deposit and interest) into a Redwood Bank call account. This will only be temporary as this account does not pay credit interest. The funds will only be retained in this account for a maximum period of ten Calendar Days.
  • We will contact you when the funds have been paid into the Redwood call account to explain your options.
  • In order to transfer your proceeds from the Redwood Bank call account during this period, you will need to call Redwood Bank directly on 0330 053 6067 or email hello@redwoodbank.co.uk with your instructions.
Additional information
  • To view our full range of savings products, which may also be suitable for your savings needs, please click here at Redwood Bank | Savings.
  • Statements are available on request.
  • All interest on UK savings accounts will be paid without the deduction of tax.
  • You have the option to change your mind within 14 days of account opening. Let us know within this period and we will cancel your account without penalty or notice.
  • Withdrawals cannot be made until the end of the term.
  • Your financial position must allow you to cover any cash flow during the fixed term period.
  • Our One Year Business Savings Bond has a maximum funding limit and, once reached, the account will become unavailable for new customers and future payments from existing customers may be returned.

These documents form your agreement us and explain how to use your account.

Please take the time to read them carefully before applying for your account:

Business savings bond terms and conditions Download

Key features & summary box for 1 year business savings bond Download

FSCS deposit scheme information sheet Download

Your business savings, protected

Your eligible deposits with Redwood Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered. Please click here for further information, or visit www.fscs.org.uk.

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Information on all our accounts

Information and rates for our business savings accounts, including those no longer available.

Read More

Looking for a shorter term?

Our notice accounts offer shorter notice periods and may be better suited to your needs.

Learn More

Prefer to apply by post?

Print our application form yourself and send it to us in the post.

Download application form

MoneyHelper

Access free impartial guidance on savings options for you and your business.

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Frequently Asked Questions

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Opening a Savings Account

We have a responsibility to know our customers, so we will need to check the following aspects:​ 

  • Registered address of your organisation.​ 
  • Verifying the identity of all key individuals and organisations on the account (e.g. Partners, Directors, Members, Authorised Users, Beneficial Owners etc).​ 
  • Verifying the nature of trade of the business.​ 

We do this by checking various electronic databases. If we are unable to verify your organisation, or the individuals involved in its management or operation, we may ask you to supply us with some identity documents via email. We will not be able to open your account until we have successfully verified your details​. 

When you apply for your business savings account, we will ask you for the details of the business current account that you will use to pay into, and out of, your Redwood Bank savings account. The nominated account must be in the name of the business you are apply on behalf of.​ 

We will make all payments through this account. If you wish to change your nominated account, contact us at: hello@redwoodbank.co.uk or on 0330 053 6067 or download and complete this form.

If you are a Limited Company​: 

  • Full name of the business  
  • Business address​ 
  • Registration number​ 
  • Nature of trade​ 
  • Name, DOB, Address, and contact details (phone, email) of individuals who own or control over 25% of the entity’s capital or profit, or its voting rights.​ 

 If you are a Charity​: 

  • Full name of the charity/organisation ​ 
  • Registered Address​ 
  • Registration number​ 
  • Nature of trade ​ 
  • Name, DOB, Address, and contact details (phone, email) of individuals you wish to have access to the account, this must include a minimum of one trustee. ​ 

If you do not have a registration number or are a Club or Association, we will require the following information during the application process, please note that the following items will be requested after applying:​ 

  • Nature of body's activities and objects​ 
  • Names of all Trustees/Settlor (or equivalent)​ 
  • Names of classes of beneficiaries.​ 

If you have any questions, please do not hesitate to contact us on 0330 053 6067 or email us at: hello@redwoodbank.co.uk.​ 

Applications can be submitted online or via post. More details on the application process can be found under ‘How do I open a business savings account?’ 

You can apply online through our website here or by post. To apply by post, please complete a paper application form available below:  

Please post paper applications to:  

Redwood Bank Limited​ 
The Nexus Building, ​ 
Broadway, ​ 
Letchworth Garden City, ​ 
SG6 3TA​ 

If you have any further questions, get in touch on 0330 053 6067 or email: hello@redwoodbank.co.uk.​ 

You can add up to four authorised users on your savings account. ​ 

If you need to change or remove any authorised users on your account, please complete this form and email: hello@redwoodbank.co.uk.​ 

Note signatures from all authorised signatories, including anyone being removed, are required. If this cannot be attained, a P45 copy or copy of minutes confirming departure can be accepted.