Interest payment on a 2 year RCI fixed rate bond?

TUVOK

This bond states that the interest is paid on the 'Anniversary', does that mean after 1 year and then another interest payment for the second year, or is the total interest paid after 2 years?

Bigwheels1111

Is it the 5.05%.
https://moneyfactscompare.co.uk/savings-accounts/2-year-fixed-rate-bonds/?quick-links-first=false

If so, interest can be paid away or compounded.
So pays after 12 and 24 months.

eskbanker

TUVOK said:

This bond states that the interest is paid on the 'Anniversary', does that mean after 1 year and then another interest payment for the second year, or is the total interest paid after 2 years?

As above (but from the definitive source):

• Interest is calculated daily and can be paid monthly or annually, the date we pay your interest is linked to the date we receive your initial qualifying deposit

https://www.rcibank.co.uk/savings/2-year-fixed-term-account

TUVOK

My thanks to you both.
I would have preferred that the interest was paid out at the end of the 2 year term term in order to lessen my taxable interest in the next financial year, but a good product and I believe that 2 year bonds could be the best fixed rate option at the moment.

eskbanker

TUVOK said:

My thanks to you both.
I would have preferred that the interest was paid out at the end of the 2 year term term in order to lessen my taxable interest in the next financial year, but a good product and I believe that 2 year bonds could be the best fixed rate option at the moment.

You can use the search filtering functions at Moneyfacts to identify two year fixes where interest is only paid on maturity, although there are still no guarantees that providers will report interest to HMRC when you'd expect them to!

https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false&id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=4&terms=8&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2

....and having identified candidate accounts via such comparison sites, verify the details at the providers' own sites.