These are the interest rates currently in effect for our business accounts and mortgages. Please read these explanatory notes for an explanation of the terms used.
Reference Interest Rate
Bank of Scotland announces that with effect from 5th of March 2009 its Reference Rate has been changed from 1.00% per annum to 0.50% per annum. Reference Rate means the Bank of England Bank Rate or such other externally set rate as We may decide from time to time.
Any reference below to base rate, refers to the Bank of England Base Rate.
For information on the Currency Interest Reference Rates see the Currency Rates PDF [11KB]
The reference rates quoted are set on Thursday for value the next Monday.
Interest is paid monthly on Currency Accounts. If you wish to have details about the interest rates paid on other major currencies, please contact us on 0870 850 0871.
Rate effective from 10th March 2010. Existing customers please contact your Relationship Manager for details on your specific rates.
The rate shown above is only available today. Due to the nature of the product, we may also need to withdraw the rate quoted above today without notice. If the rate is withdrawn in this way, we will endeavour to publish new rates as soon as possible.
The interest rate on a Direct Business Cheque Account or Business Current Account overdraft is negotiable if arranged and is linked to Bank of England Base Rate. If it is not prearranged, the rate is 22.5% over Bank of Scotland Base Rate.
Interest rates can be fixed at the outset so they remain constant throughout the period of the loan. Alternatively, you can have a Fluctuating Rate Loan where changes in the Bank of England Base Rate affect the rate on the loan. Other options are available which we will be happy to discuss with you.
You can have the traditional repayment system, where capital is paid back throughout the life of the loan. Or you can go for interest-only, although you will need to set up a parallel investment that can pay off the capital at the end of the loan period.
The Annual Equivalent Rate (AER) represents the annual rate effectively received by the customer if interest at the gross rate applied during a year remained in the account and itself earned interest. As every advert for a savings product where a rate is displayed will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.
Gross - the rate of interest paid without deduction of tax to eligible non-taxpayers:
incorporated bodies such as limited companies, pension funds, charities, churches, societies. Associations, clubs
individuals not ordinarily resident in the UK who have completed the necessary Inland Revenue declaration
non-taxpaying UK residents who have completed an Inland Revenue form R85 and lodged it with Bank of Scotland. Form R85 and an Inland Revenue explanatory leaflet (IR110) are available from all Bank of Scotland branches and from Direct Customer Services
For customers with joint accounts for two persons, where one person can complete form R85 to have interest paid gross but the other person cannot, Bank of Scotland is offering the facility to have 50% of the interest paid gross and 50% paid net. All Bank of Scotland branches and Bank of Scotland Banking Direct will give further information on this facility.
Current comparative interest rate information can be found on the British Bankers Association website. www.bba.org.uk (opens new window).
