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2 Year Variable Rate ISA Bond (Issue 1)

How to Apply

5.50 %Tax-free/AER*

  • A variable rate of interest
  • Invest from £500
  • Apply in branch or by post
  • Gross/AER* - See Jargon Buster

Summary Box

Account name

2 Year Variable Rate ISA Bond (Issue 1)

What is the interest rate?

5.50% Gross/AER

The interest is paid annually and will be credited to your account after close of business on 1 January.

Can Progressive change the interest rate?

Yes, the interest rate is variable. We can increase or decrease the interest rate as described in our terms and conditions of the account.

If we are decreasing the interest rate we will notify you before the reduction at least 14 days before the change takes effect.

What would the estimated balance be at the end of the fixed term based on a £1,000 deposit?


This is an example based on a deposit of £1,000 made on account opening for the term of the bond, assumes no further deposits are made while the issue is open and the interest rate does not vary during the term of the bond.

How do I open and manage my account?

The ISA Bond is available to existing Members and new customers resident in the UK who are aged 16 years and older.

There is a minimum lodgement of £500 required to open an ISA bond.

You can save up to a maximum of the annual ISA allowance (£20,000 for the current tax year).

You can transfer existing ISA funds into the account.

The bond can be opened and operated at any of the Society’s branches, agencies or by post.

Can I withdraw money?

You can make withdrawals, close the ISA Bond or transfer the balance to another ISA provider before the maturity date subject to a loss of interest equivalent to 180 days gross interest on the amount withdrawn.

There is no loss of interest if you cancel your account within 14 days of opening it.

We will write to you in good time before your ISA Bond matures to advise you of the options available to you for the closing balance of your ISA bond.

If we do not receive written instructions from you, the quoted variable rate of interest will cease to apply on the date of maturity and the balance of your ISA Bond will be rolled over into a variable rate instant access Cash ISA at the interest rate applicable at that time.

Additional information

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. This will enable you to compare more easily the return you can expect from your savings over time.

Gross rate quoted is the taxable rate of interest without deduction of income tax.

You may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please visit HM Revenue & Customs (HMRC) website

We reserve the right not to renew your bond at the end of the fixed term, but will give you 30 day’s notice before the bond maturity date should we intend to exercise this right.

The interest rate is correct as of 4th September 2023.

For further information refer to the terms and conditions of the account and the terms and conditions contained within the Savings General Terms and Conditions. You can obtain a copy of these documents in the 'Useful Information' section below.

How to apply

Before you apply, please make sure you read the Summary Box, account terms and conditions, Savings Service Agreement and FSCS Information in full. You can save or print a copy of the PDFs for future reference. These documents contain details of your agreement with us for this account and we will rely on them for our relationship with you.

In branch

If you open your account in one of our branches we will use an electronic verification system to verify your identity and address. We cannot do this for applicants under 18 or if you are not registered on the electoral roll. In these instances you will be required to provide full identification documentation and these can be found in our leaflet Proving your identity.

Visit your local branch to open this account.

Find your nearest branch
By Post

To open this account by post:

  • review the Summary Box above;
  • read the account terms and conditions and the Savings General Terms and Conditions;
  • review the FSCS leaflet for further information or visit;
  • download and complete the application form;
  • provide appropriate identification - please refer to our Providing Your Identity document.
  • all postal applications require photographic ID and proof of address these must be certified. This can be done by a bank or building society official, councillor, minister of religion, dentist, chartered accountant, solicitor or notary, teacher or lecturer. As long as the person is not related to you, live at the same address or in a relationship with you.
  • return the completed form with your cheque to the branch you want your account opened in.
  • We recommend that you download a copy of the documents and retain for your records.