Current Account

1. Where the balance falls below £1, interest will be earned at the prevailing basic rate, currently 0.10% gross p.a.

2. Gross is the rate of interest without the deduction of tax (please also see note 3).

3. Net is the annual rate of interest payable after the deduction of basic rate tax (currently 20%). Interest will be paid net 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 HM Revenue & Customs for repayment of tax. For individuals whose income falls within the basic rate band, 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 the higher rate of income tax of 40% will have to pay additional tax due. For further information please visit www.hmrc.gov.uk/individuals/babsi.htm.

4. AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added to the capital balance each year.