Tax-Free Savings (TFS)
Earn from 3.95% APY to 4.23% APY
- Choose from a 1 to 5-year term to fit your savings plan
- Minimum balance requirement of $2,000
- Save up to $20,000 per year as per current IRS threshold
- FDIC-protected
Key Product Information
- A Fixed Rate Cash is a guaranteed, tax-free interest rate for 1-5 years.
- You can save up to $20,000 per tax year, but early withdrawals incur penalties.
- It is ideal for those who can lock away their money and want a fixed interest rate
Benefits
Competitive interest rates that are tax-free
FDIC protection up to $250,000 for each eligible depositor
Interest rates are fixed and do not change during the term of the deposit
Limitations
Premature withdrawals are subject to penalty
Product Summary
It is a fixed rate as shown in the table below:
Fixed Rate Cash | |
Term | Interest Rate (APY) |
1 Year | 4.23% |
18 Months | 3.95% |
2 Years | 4.16% |
3 Years | 4.12% |
4 Years | 4.00% |
5 years | 4.22% |
Interest is calculated daily and credited monthly, quarterly, annually, or at maturity of the deposit depending on your selection. This selection cannot be amended once the selection is confirmed.
You can choose to have your interest paid monthly (for 2, 3, 4 and 5 year terms), quarterly (for 3, 4 and 5 year terms), annually (for 2, 3, 4 and 5 year terms), or on maturity of the deposit (for all terms).
Interest will be paid out to the nominated account stated at the time of account opening. This account must be in your name. Interest is not added to your principal amount unless you have selected interest payment at maturity.
Please note that UEB does not compound interest. Please refer to the Interest Rate Sheet for the Gross Rates on different interest payment options.
No, this account has a fixed rate of interest. This means that the rate will not change during the duration of the term.
Below is an example of what the future balance might be after interest has been paid.
FIXED RATE CASH | |||
TERM | MIN. DEPOSIT | INTEREST RATE (APY) | BALANCE AT THE END OF THE TERM |
1 Year | $2,000 | 4.23% | $2,084.60 |
18 Months | $2,000 | 3.95% | $2,119.66 |
2 Years | $2,000 | 4.16% | $2,169.86 |
3 Years | $2,000 | 4.12% | $2,257.52 |
4 Years | $2,000 | 4.00% | $2,340.23 |
5 Years | $2,000 | 4.22% | $2,459.15 |
Assumptions taken for the above calculations:
- Calculations based on a minimum deposit of $2,000
- No change in the amount (no deposits, no withdrawals)
- No change to the interest rate during the fixed term
- Interest payment on maturity assumed
These projections are provided for illustrative purposes only and do not take into account individual circumstances.
You must;
- Be aged 18 or over and resident in the USA for tax purposes.
- Only open this account in your sole name.
- Hold a valid National Insurance Number.
- The minimum balance is $2,000.
Funding your account
- When you open your account through internet or mobile banking, a 'Funding account' will be opened. You may then send an electronic transfer to this Funding account and once the committed amount has been deposited, your Fixed Rate Cash will commence.
- If you apply by post, you may send a cheque with your application in order to fund the account. Please ensure that the cheque is payable to you, and is from an account which you own and operate.
- If you apply in branch or by post and you wish to wait for your account to be opened before you fund it - you will receive a welcome letter with your account details. The fastest way to fund your account is using internet or mobile banking, and you can register using your account details and the answers to your security questions.
What is a Funding account?
A Funding account is a non-interest bearing transit account that we use to help you set up your Fixed Rate Cash. You should only transfer up to the committed amount into the Funding account. Any additional funds will remain in the Funding account, but you will not be able to move them through internet or mobile banking and will need to contact us by phone. If you make multiple deposits to fund your account, we will transfer the funds from the funding account into your Fixed Rate Cash once you have reached the minimum funding amount of $2,000.
Managing your Account
- Online or Mobile Banking
- Branch
- Post
- Telephone
Our internet and mobile banking service enables you to view your balances, statements, provide instructions through secure messaging and manage your finances.
Early withdrawal in full (and no partial withdrawal) is allowed before the full term expires. However, there will be an early withdrawal charge for withdrawing the deposit before the end of the term of the deposit.
Early withdrawal charges are as follows:
Term of Deposit | Early Withdrawal Charges |
| 1 Year | 90 days gross interest |
| 18 Months | 135 days gross interest |
| 2 Years | 180 days gross interest |
| 3 Years | 270 days gross interest |
| 4 Years | 365 days gross interest |
| 5 Years | 365 days gross interest |
The Early Withdrawal Charge will be deducted from interest that has accrued on your Account. If interest has already been paid out to your nominated account, then the Early Withdrawal Charge will be deducted from your deposit with us.
The total of the interest paid and deposit you receive back from us will be no less than your deposit at the Fixed Rate Cash start date.
- This account can only be held in a sole name.
- Transfer-ins and Transfer-outs are allowed.
- There is a 14 day cooling off period for all Fixed Rate Cash. If you decide to cancel within 14 days of funding the Account, UEB will not deduct Early Withdrawal Charges, but you will not be entitled to interest payments for the number of days the deposit has been held with UEB.
- Gross rate means that UEB will not deduct tax from the interest we pay on money in your Account. It is your responsibility to pay any tax you may owe to Internal Revenue Service (IRS) or other tax jurisdiction.
- APY stands for Annual Percentage Yield and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will include an APY, it makes it easier for you to compare what return you can expect from your savings over time. UEB does not compound interest.
1 | What type of TFSs does UEB offer? | UEB only offers the Fixed Rate Cash TFS product to customers. |
2 | Can a Fixed Rate Cash TFS be held in joint names? | TFSs cannot be held in joints names as the tax-free benefits of an TFS is only applicable to one person. |
3 | How is the interest calculated and paid? | Interest is calculated daily and credited monthly, annually, or at maturity of the deposit depending on your selection. The interest rate frequency cannot be amended once the selection has been confirmed. Interest will be paid out to the nominated account provided at the time of account opening. |
4 | Why have I not received my interest payment? | If your interest payment falls on a non-business day, (e.g. weekends or bank holidays), we will process your interest payment on the following business day. Please allow 24-48 hours for the funds to reflect in your account. |
5 | What interest rate will I get? | You will receive the interest rate which was advertised on the date of your application. Please be mindful that if you do not fund your account within ten (10) days, you may not receive the interest rate you had applied for. |
6 | Is it possible to change my nominated account details? | Should you wish to change the nominated account during the course of the Fixed Term of the TFS, you will need to provide UEB with written instructions (signed and dated) by all account holders or you can also send us a secure message using digital banking with your instructions. |
7 | Can I move my UEB TFS to another UEB TFS to get a better rate? | Yes. If you would like to transfer your existing TFS into another UEB product ahead of the maturity of the date you will be charged an early withdrawal penalty. Please refer to the TFS terms and conditions for further information of the early withdrawal penalty charges. |
8 | What is the Funding Period for my TFS? | You will have 10 days to fund your account. Any deposits after this period will be subject to the prevailing interest rate. |
9 | Can I fund my account via cheque? | If you apply by post, you may send a cheque with your application in order to fund the account. Please ensure that the cheque is made payable to you and is from an account in your name. |
10 | How much can I invest in a single tax year? | The TFS allowance for the 2025/26 tax year is $20,000. |
11 | Can I have more than one Cash TFS? | You can have more than one Cash TFS open at the same time. You must ensure that you do not exceed the current annual subscription limit of $20,000. |
12 | Are my funds in a Cash TFS protected? | UEB Fixed Rate Cash TFSs are covered by the FDIC. Deposits of up to $250,000 per eligible person are protected under FDIC. |
13 | When does the tax year begin? | A tax year, is the 12-month period which starts on 6th April, and ends 5th April the following year. |
14 | Do I have to pay tax on my Cash TFS? | You are do not have to pay income tax on the interest you earn from your UEB Cash TFS, as long as you do not exceed the TFS allowance ($20,000). |
15 | How long does it take to process an TFS Application? | It can take up to 15 days to process your TFS application. |
16 | Do I need to open a Current Account to apply for the Cash TFS Account? | You do not need a UEB Current Account to open a Cash TFS. |
17 | Can I transfer funds to my nominated account? | As your TFS is a fixed product, you are not able to make transfers to and from the account. |
18 | Can I view my account online? | You are able to view your balance, details of your account and statements online through Digital Banking and Mobile Banking. |
19 | Can I apply for an TFS to utilise my current year subscription? | Yes, you can apply for an TFS to utilise your current year subscription allowance. |
20 | How do I close my TFS account? | Online: Please log onto digital banking and send us a secure message stating that you would like to close your UEB Fixed Rate Cash TFS and our TFS team will action your request. Email: Please send us an email from your registered email address to support@uebplc.com stating that you would like to close your UEB Fixed Rate Cash TFS and our TFS team will action your request.
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21 | What happens to my TFS at the end of the term / maturity? | We will write to you at least fourteen (14) days before your Cash TFS matures to ask for your instructions with respect to what you would like to do with your Cash TFS money at maturity. Upon maturity, you can either: 1) Re-invest your funds with UEB. 2) Transfer your funds to another TFS Provider. 3) Close your TFS and your funds to a nominated account. You can send us your instructions via secure message, If you do not provide us with instructions before the Maturity Date or if we cannot reasonably comply with your instructions on the Maturity Date, we will automatically rollover your Cash TFS into a Cash TFS, which is either identical or reasonably similar to your matured Cash TFS. The interest rate applicable to the new Cash TFS account will be at the prevailing interest rates offered by UEB at that time. |