How does it work?

Instead of having your interest paid on 31 March, payment of your interest will be deferred until a date that suits you. You do not have to let us know in advance the date you want the interest to be paid.

Will I lose out on interest compounded?

No. We have made sure that your deferred interest will itself earn interest on the same basis as the capital in your account. We calculate this as if interest had been paid to you on 31 March.

How could I benefit from deferred interest?

Deferred interest is a tax planning tool. If your income varies from year to year, or you're looking to relocate to a different country, deferred interest gives you the flexibility of choosing how much interest you capitalise each financial year and exactly when this capitalisation takes place.  You can leave your deferred interest for years at a time, or collect however much you want, when you want.  Either way, you know that you'll still be paid a competitive rate of return. 

How do I set up the deferred interest option?

All you have to do is tick the deferred interest box on the application form when opening your account.  If you're an existing account holder and have Telebanking set up you can instruct us to change your interest options by telephone, fax, and when registered, by using our Internet Banking service.  If you are not a registered Telebanking user, simply instruct us in writing.

How do I request payment of my deferred interest?

You can inform us once per financial year (1 April - 31 March) when and how much deferred interest you want capitalised. We'll ensure that this is completed on the day you specify - it's as simple as that.