This account lets you use your savings to help a family member who does not have a deposit to buy their first home. There is no access to your savings for three years.
2.50% gross/AER for any balances over £1.
No. This account has a fixed rate of interest so the rate won’t change during the three year term.
For example, if you deposit £20,000 when you open the account, the balance after 36 months will be £21,537.81.
You can only apply over the phone.
You can apply for this account if:
You should obtain independent legal advice before signing the legal charge over this savings account.
If you want to open it as a joint account, you both must live at the same address or have the same surname.
When you apply, we will open an Everyday Saver account for you first. You'll need to pay your deposit into this account. The deposit must be 10% of the agreed property purchase price and can't be more than £50,000. We need to receive this at least seven working days before the property purchase completes (not including Saturdays, Sundays or English bank holidays). Before the house purchase completes we’ll change your account to a Family Boost Fixed Savings Account. The three year term starts on the day the account is changed to a Family Boost Fixed Savings Account.
You can manage the account online.
No. You can’t take out any money during the term or close the account early.
The money is held as security against the Family Boost Mortgage. This means we can withdraw from the account to pay off arrears on the mortgage if the mortgage repayments have not been kept up to date. If we do this you may get back less than you deposited.
After three years the account will change to an Instant Saver. Before this happens, we'll contact you to explain your options and next steps. If the mortgage had been kept up to date then you will then be able to access your savings. However if the mortgage has not been kept up to date, the legal charge may continue after the three year term with the Instant Saver. You will be able to access your money once the arrears have been cleared and the mortgage is up to date.
Gross rate means we won’t deduct tax from the interest we pay on money in your account. You will need to pay any tax you may owe to HM Revenue & Customs (HMRC).
AER stands for Annual Equivalent Rate. Whenever you see an advert for a savings account which shows an interest rate, you will see the AER. This means you can use the AER to compare accounts. It shows what the interest rate would be if your interest was paid and compounded once each year.
For more definitions, view our savings glossary.
If you aren't planning on supporting a family member with their Family Boost Mortgage, this isn't the right savings account for you.