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Whether you voted to remain in or to leave the European Union (EU) in the June 2016 Referendum, you may now be optimistic or pessimistic about the outcome of the negotiations and what this will mean for the United Kingdom of Great Britain and Northern Ireland (UK). 

The Brexit Bond is designed to enable savers to express their view about Brexit by investing in one of two options:

- The Brexit Optimist Bond 
The Brexit Pessimist Bond


If you are unsure whether this product is right for you, we recommend that either you do not invest or that you seek independent financial advice before proceeding with an application.

HOW IT WORKS

The Brexit Bond is a fixed term investment that offers a fixed interest rate of 1% per annum PLUS the opportunity for a potential 2% bonus at the end of the fixed term. The bonus is dependent on the change to the Pound to Euro exchange rate, as published by the Bank of England, between 28 March 2017 (the day before Article 50 was triggered) and 29 March 2019 (the date when the UK is due to exit the EU). The Brexit Bond matures on 2 May 2019 - before this date, you can't access your money. 

Of course we live in an uncertain world and there are many other things that affect the Pound:Euro exchange rate, not just the Brexit negotiations. This means that Brexit may not be the dominant factor determining the exchange rate on 29 March 2019. 

The Pound:Euro exchange rate on 28 March 2017 was UK £1.00 = Euro €1.1535 (source: Bank of England daily spot exchange rates against Sterling). This means if you'd bought £100.00 worth of Euros on 28 March 2017 you would've had €115.35 to go on holiday with. 

FREQUENTLY ASKED QUESTIONS

Is this investment right for me?

If you're unsure whether this product is right for you, we recommend that either you do not invest or that you seek independent financial advice before proceeding with an application. The Family Building Society is unable to give you any advice as to whether this is a suitable investment for you. 

What happens if the UK has not left the EU by 29 March 2019?

We will still use the daily spot exchange rate published by the Bank of England for 29 March 2019. This date will not change.

What period is it based on?

The Brexit Bond is a fixed term investment to 2 May 2019. The bonus interest is based on the change to the Pound:Euro exchange rate between 28 March 2017 and 29 March 2019.

What is the bonus I will get?

You will either receive no bonus or a bonus of 2%. Whether you receive a bonus depends on the change to the Pound:Euro exchange rate and which version of the Brexit Bond (either Brexit Optimist or Brexit Pessimist) you have chosen. 

What is Article 50?

Article 50 is part of the EU law (the Treaty of Lisbon) that sets out how member States may withdraw from the EU.

What was the €Euro worth when Article 50 was triggered?

As published by the Bank of England for 28 March 2017, the exchange rate was UK £1.00 to Euro €1.1535.

What happens if the Pound:Euro rate stays the same?

You won't receive any bonus interest. However, you will still receive the 1% per annum fixed rate interest.

What happens if the Bank of England is no longer providing the Pound:Euro exchange rate data on 29 March 2019?

If this is the case we will use our reasonable judgment to select the Pound:Euro exchange rate published by another appropriate and independent financial organisation. 

How do I get paid the bonus?

The bonus will be added to your Brexit Bond on 30 April 2019.

Is the bonus taxable?

The bonus is taxable in the same way as normal savings interest. Due to the introduction of the Personal Savings Allowance (PSA), you will need to declare any income from the bonus earned over your PSA through a self-assessment tax return to HM Revenue & Customs. 

How many Brexit Bonds can I have?

You can have as many bonds as you like. You can also have a combination of Brexit Optimist and Brexit Pessimist Bonds.

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