Fixed Term Base Rate Tracker Bonds

United Trust Bank’s Tracker Bonds offer an innovative solution to savers who don’t want to keep moving their savings, but also don’t want to miss out if interest rates start to go up.

They work by tracking movements in the Bank of England Base Rate (Base Rate) by guaranteeing to pay a rate of interest at a fixed amount above the Base Rate for a fixed period of time. This means that if the Bank of England increases or decreases the Base Rate, the interest rate customers receive will also change.

For example, United Trust Bank’s current 3 year Tracker Bond pays a rate of interest of 1.30% p.a. above the Base Rate, which at the moment is 0.25%. Customers who are invested in this bond are currently receiving 1.55% Gross/AER* (1.30% plus 0.25%).

If the Bank of England increases the Base Rate to 0.75%, the interest rate on the 3 year Tracker Bond will go up to 2.05% Gross/AER at the same time. If there’s another Base Rate increase to 1.0%, the 3 Year Tracker Bond will pay 2.30% Gross/AER. Every time the Base Rate moves during the 3 year term, whether up or down, the interest rate payable to customers moves as well.

United Trust Bank currently offers two Tracker Bonds. The 3 year Tracker Bond which pays 1.30% above the Base Rate (1.55% Gross/AER) and the 2 Year Tracker Bond which pays 1.20% above the Base Rate (1.45% Gross/AER).

For savers who want a competitive rate of interest, are happy to place their money for 2 or 3 years in an account which will track movement in the Base Rate (both up and down), these bonds are well worth considering.


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* AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

Minimum deposit £500
Maximum deposit £500,000

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