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Fixed Rate Bond

Benefit from a fixed interest rate

Know in advance what your savings will earn

Fixed Rate Bond

If you have between £5,000 and £500,000, and are happy to lock your money away for one or two years, a Fixed Rate Bond may give you a better rate of interest than an instant access account. The longer the term you choose, the higher the interest will be.

Our Fixed Rate Bond lets you:

  • Choose a term that suits you - either one or two years
  • Have a fixed rate of interest - so you know in advance what your savings will earn
  • Benefit from a better rate of interest - fixed rate accounts generally offer better rates than instant access accounts
  • Automatically reinvest - at maturity, we reinvest your deposit into a new Fixed Rate Bond unless you tell us otherwise

 

Bond term

Interest
Payment

AER
(fixed)

Gross p.a.
(fixed)

Net

Maturity

 

1 year

Annual

1.10%

1.10%

0.88%

11 August 2015

Apply

1 year

Monthly

1.10%

1.09%

0.87%

11 August 2015

Apply

2 year

Annual

1.35%

1.35%

1.08%

11 August 2016

Apply

2 year

Monthly

1.35%

1.34%

1.07%

11 August 2016

Apply

 
 

Gross – this means the interest rate you are paid before the deduction of income tax

Annual Equivalent Rate (AER) – this is a notional rate used for interest bearing accounts, which illustrates the interest rate if paid and compounded each year. It helps you to compare the effective rates of credit interest on different accounts

Net is the interest you are paid after deduction of income tax

Fixed Rate Bond

What you should know

  • You need a nominated account - to set up your Fixed Rate Bond, you need to have a NatWest current account or instant access savings account (excluding all cash ISA accounts)

  • When your Fixed Rate Bond application has been processed, your funds will be transferred from your nominated account to your Fixed Rate Bond account

  • Any interest you earn will also be paid into your nominated account

  • Your Fixed Rate Bond will be opened within 5 working days and your funds are transferred from your nominated account

  • Your interest payments -  you can choose to receive interest annually or monthly:
     - Annual interest will be calculated daily and paid into your nominated account on the last business day in April and on the last day within term of the Fixed Rate Bond
     - Monthly interest will be calculated daily and paid into your nominated account on the last business day of the month and on the last day within the term of the Fixed Rate Bond
  • Automatic reinvestment - at maturity, we will automatically reinvest your deposit into a new Fixed Rate Bond of the same term and interest frequency. You will have the opportunity to opt out

  • No partial withdrawals - you can't make partial withdrawals or make additional deposits
 
 

 

  • Early closure - you may close your Fixed Rate Bond before it matures by writing to your branch and giving 35 days notice. If you close your Bond early, it may result in an early closure charge equivalent to: 90 days' gross interest for our 1 year Fixed Rate Bond and 180 days' gross interest for our 2 year Fixed Rate Bond

  • Age criteria - you need to be aged 18 or over, be a NatWest customer and for tax purposes, you need to be a permanent UK resident

  • Full details - our handy information sheet contains the full details and terms and condition for our Fixed Rate Bond

  • Limited offer - this is a limited offer and may be withdrawn from sale at any time

  • If you change your mind about opening your Fixed Rate Bond you have a 14-day period from the date your Bond has been opened to cancel it without an early closure charge

  • The interest payable or tax treatment may be subject to change in the future and depends upon your individual circumstances

  • In the event of death or involuntary redundancy, you can close your Fixed Rate Bond without incurring an early closure charge. In those circumstances, an early closure charge will not apply. 35 days' notice will still be required.
 

Important information

Please read these documents

These useful documents contain everything you need to know about our Fixed Rate Bond.

Key documents:

Got an existing NatWest Fixed Rate Bond?

Manage your reinvestment and more

From getting started with online banking to reinvesting your Fixed Rate Bond, you'll find everything you need to manage your account here.

More on managing your Fixed Rate Bond

Helpful banking

Protecting your money

With our account monitoring and online fraud protection promise, it's no wonder our customers voted us the UKs most trusted mainstream bank for 2013.

Your eligible deposits with NatWest are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit protection scheme. Any deposits you hold above the £85,000 limit are not covered.

Further information is available here or visit www.fscs.org.uk.

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