Frequently Asked Questions
Who can invest?
How much can I invest?
What if I change my mind after sending off my application form?
Will I be able to take money out of my Bond?
Will I be able to add money to my Bond?
Is it possible that I could lose my investment?
Will my money be invested in individual companies on the Stock Market?
Will I receive dividends?
Will my money be invested ethically?
What interest will I receive on my original investment?
When will interest be paid?
Will I have to pay tax on my interest?
What if I die before the Bond matures?
What happens when my bond matures?
Are there any hidden fees or charges?
How long will my money stay invested for?
What happens when the Guaranteed Savings Bond matures?
Who can invest?
Any UK resident over the age of 16. Joint applications are also welcome.
How much can I invest?
Any amount between £3,000 and £1,000,000.
What if I change my mind after sending off my application form?
As with other bank accounts, you have a cooling off period of 14 days - taken from the Bond start date - in which you can decide to close your account without any charges.
Will I be able to take money out of my Bond?
No, you must be sure you can invest your money for the full five years.
Will I be able to add money to my Bond?
No, you can't increase your original investment.
Is it possible that I could lose my investment?
No. The worst that could happen is that at the end of the five-year term you will receive your original investment back, in full.
Will my money be invested in individual companies on the Stock Market?
No, although your interest is linked to the performance of the index / indices, the Bond does not directly invest your funds in the companies who make up this index. Instead, your investment is held on deposit at the Co-operative Bank, and the interest you receive is linked to the performance of the index.
Will I receive dividends?
No. You will not benefit from individual dividend income.
Will my money be invested ethically?
Yes. As with other Co-operative Bank savings accounts, your money will be held on deposit at the Bank and then invested according to the principles stated in our Ethical Policy. For example, your money will never be used to support regimes that abuse human rights or businesses involved in the manufacture or transfer of armaments to oppressive regimes; while on the positive side, it will be used to support fair trade and environmental sustainability.
What interest will I receive on my original investment?
The interest you receive will be calculated based on a percentage of the average rise in the index / indices over the five-year term. This percentage may change with each new issue.
When will any interest be paid?
Any interest will be paid at the end of the term of the investments.
Will I have to pay tax on my interest?
Yes, interest is paid net of the lower tax rate (currently 20%) unless you qualify to receive gross interest in the tax year that the Bond matures and have sent us the Inland Revenue form. Higher rate taxpayers might be liable for the difference over and above the lower rate of tax.
What if I die before the Bond matures?
If you're a sole account holder, the Bond may be either transferred to a person nominated by your representative in accordance with your will (or distributed in accordance with intestacy rules) or closed by your representative and your original investment repaid. If a joint account holder dies, the Bond will be transferred into the name of the surviving account holder.
What happens when my bond matures?
We'll contact you a month before that date for your instructions. If we don't hear from you before the maturity date, the money will be placed in an interest-bearing Co-operative Bank account on your behalf.
Are there any hidden fees or charges?
There are no fees or charges - your capital will be invested in full.
How long will my money stay invested for?
Your money will be invested for a fixed term, this is usually around 5 / 6 years, however, the term can change with each new issue. Please see Current Issue page to find out the term of the latest issue.
What happens when the Guaranteed Savings Bond matures?
When the Guaranteed Savings Bond matures we will write to you stating whether you will receive the minimum level of growth or the amount based on the average rise of the index / indices over the investment period. We will pay whichever amount is greater. You can call us to arrange an appointment with a Financial Adviser to discuss your options for reinvestment. If we don't hear from you we will transfer the amount to a Co-operative Bank interest-bearing account on your behalf.
