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Customer update: we will be carrying out planned maintenance on our e-banking system from 5pm, Friday 16th April until 5pm, Sunday 18th April. During this time some online services may be unavailable.

The 1 Year Business Savings Bond (Issue 5)

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

At a glance...

Notice period

Interest payable

Interest rate

AER

Notice period
1 Year
Interest
Annual
Interest Rate
0.80%
AER variable
0.80%
Notice period
1 Year
Interest
Monthly
Interest Rate
0.79%
AER variable
0.80%
AER stands for annual equivalent rate. It shows what the interest rate would be if interest was paid and compounded once each year.
  • Account summary
  • Terms and important documents

  • 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 0.80% AER 
    • Minimum balance of £10,000
    • Maximum balance of £1m
    • Use a nominated current account for payments
    • 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.
    • Frequently asked questions.

    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 0.80% 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 0.80%, an account with £10,000 will have a balance of £10,080 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 [email protected] with your instructions.

    Additional information

    • 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.

Find out more

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
Savings support area
How do I open a business savings account?

You can apply online from our website, or by post. To apply by post, please complete our application form below:

  • 1 Year Bond Business Savings Account application form here.

If you have any further questions, get in touch on 0330 053 6067 or email [email protected].

What types of organisation can open a savings account?

You can open a savings account if you are a sole trader, limited company, partnership, limited liability partnership, club, society, association or charity.

Companies and shareholding companies must be UK registered. All beneficial owners and authorised users must be UK residents.

How many authorised users can I have on one account?

You can add up to four authorised users on your savings account. Any additional authorised users will need to be requested directly with us on 0330 053 6067 or [email protected].

What checks do you do when assessing the application?

We have a responsibility to know our customers, so we will need to check the registered address of your organisation, as well as verifying the identity of all key individuals and organisations on the account (e.g. Partners, Directors, Members, Authorised Users, Beneficial Owners etc).

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 by post. We will not be able to open your account until we have successfully verified your details.

What is a nominated account?

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.

We will make all payments through this account. Please get in touch directly or click to download and complete this form if you wish to change your nominated account.