Published: 14 November 2024
If your bond is nearly at maturity, you might have questions about your next steps. Did you know you have a range of options when it comes to what you do with your maturing funds?
What's a savings bond?
A savings bond, or fixed rate savings bond, is an interest-paying savings account that holds your money for a set period of time and pays a fixed rate of interest. So, you can put your money to one side, with the knowledge that the interest rate won't change during that period.
When the account matures, you'll have to decide what to do next.
Take a look at the fixed rate bonds we currently offer and the latest savings bonds interest rates.
What happens to my savings bond after maturity?
Your provider will contact you for your instructions before maturity, of what you want to happen to your money. For example, you can withdraw the money or reinvest it into another bond or savings account of your choice
If you don't give your provider a heads-up of what you want to happen to your money, they'll have a default option. For example, once a bond matures with us, we transfer the money to an instant access maturity account, giving you the time to think about your next steps.
Are there charges for not moving your matured bonds?
Once your bond has matured, your provider will give you a range of options to choose from. You'll need to consider which option is suitable for you. You may need to pay tax depending on the amount of interest you've earned. This will depend on your Personal Savings Allowance (PSA) and income tax band.
How long does it take for savings bonds to mature?
This is up to you and the account you choose. Bonds usually last between one to five years and you'll usually get a small window after opening an account that gives you time to deposit funds before the money's locked away until the maturity date.
We hope you found this guide useful. If you're thinking of opening a fixed rate bond, look at our range of savings accounts, pop into a branch, or give us a call on 03450 505 075.
View our Fixed Rate Savings Bonds
This guide is intended as a summary only and does not constitute legal or financial advice given by Leeds Building Society. We recommend that you seek independent legal advice and/or financial advice if you have any questions or queries.
