Bond interest if you die?

metrobus · 28 March 2018 at 7:29PM

I have a 2 year fixed rate bond with Santander.

If I were to die 6 months in to it and the executor then closed it down would interest be paid for the time I was alive and held the bond?

Thank you.

Wicked_Lady · 28 March 2018 at 8:34PM

I think you would need to check the terms and conditions of the Bond if this is a concern.

metrobus · 28 March 2018 at 9:07PM

I have gone through the T&Cs and all it states is that the executor can either close the bond or let it run to maturity.
Nothing at all about any interest payment.

Keep_pedalling · 28 March 2018 at 10:24PM

I just closed down my recently deceased mothers bonds. Interest was being paid monthly on those, and they paid a whole 57 pence interest for the final part of the month she was alive.

Most bonds will pay interest if closed early because of the death of the holder. I was also given the option of closing the bonds at maturity, but that would just delay the winding up of her small estate.

metrobus · 28 March 2018 at 10:26PM

Thanks that’s the answer I needed.

Bond interest if you die?

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