2 Year Fixed Rate Bond
Looking to save £5,000 or more? Our Two Year Fixed Rate Bond pays 4.00% AER, 5.00% AER for balances of £50,000+
Looking to save at least £5,000 – and keep it untouched for the next two years? Our two year fixed rate bond could be the perfect answer.
But you'd better be quick. The bond starts on 22 December 2008, but it is only available on a first come, first served basis. So we may have to withdraw it sooner.
Why choose a two year fixed rate bond?
£5k + 4.00% AER – when you choose to receive annual interest.
£25k + 4.50% AER – when you choose to receive annual interest.
£50k + 5.00% AER – when you choose to receive annual interest.
Monthly interest option paying:
£5k + 3.93% Gross
£25k + 4.41% Gross
£50k + 4.89% Gross
Ideal if you're looking for monthly income
£5,000 minimum investment - and there is no maximum investment
Initial rate – Any deposits made before 22 December 2008 (i.e. before the start date of the Bond) will attract a rate:
- a rate equivalent to 4.25% gross / 3.40% net p.a. up until 3 December 2008; and
- a rate equivalent to 0.25% below Bank of England Base Rate p.a. until 22 December 2008.
Open more than one bond – giving you the flexibility you may be looking for
Things you should know
Maturity date - 22 December 2010
Withdrawal penalty – no partial withdrawals are allowed. An early closure of the bond will incur an early redemption fee equivalent to 90 days Gross interest.
NatWest account - you will need to have a NatWest current account or certain instant access saving accounts. The only savings accounts you can’t use are our e-Savings and Cash ISA.
| Balance | AER | Gross Rate | Net Rate |
|---|---|---|---|
| £50k + Annual income/growth | 5.00% | 5.00% | 4.00% |
| £25k + Annual income/growth | 4.50% | 4.50% | 3.60% |
| £5k + Annual income/growth | 4.00% | 4.00% | 3.20% |
| £50k + Monthly income | N/A | 4.89% | 3.91% |
| £25k + Monthly income | N/A | 4.41% | 3.53% |
| £5k + Monthly income | N/A | 3.93% | 3.14% |
Minimum investment £5,000
Last updated on: 17 Nov 2008.
The Annual Equivalent Rate (AER) is a notional rate which illustrates the gross interest as if paid and compounded on an annual basis.
The AER is not given for the monthly interest option as it is not possible for monthly interest to be paid into nor compounded in a Fixed Rate Bond.
Gross is the interest paid before the deduction of tax.
Net rate is the rate paid to customers after the deduction of Income Tax at the appropriate rate.
Tax
Interest earned on balances of less than £50,000 will be paid subject to your tax status.
Interest earned on balances of £50,000 or more will be paid without deduction of tax.
Things you should know
Maturity date - 22 December 2010
Withdrawal penalty – no partial withdrawals are allowed. An early closure of the bond will incur an early redemption fee equivalent to 90 days Gross interest.
NatWest account - you will need to have a NatWest current account or certain instant access saving accounts. The only savings accounts you can’t use are our e-Savings and Cash ISA.
You can download terms and conditions for NatWest current accounts and savings accounts and information on fees and charges as PDFs.
We sometimes allow savings accounts to be operated in a way which enables the customer to give instructions for a withdrawal or other payment which cannot be met from the funds in the account. If this happens, we may apply charges to the account. Please read our leaflet Personal and Private Banking - A Guide to Fees and Interest which contains details of these charges.
NatWest Personal and Private Banking - Terms and Conditions (PDF File 302KB)
NatWest Personal and Private Banking - A Guide to Fees and Interest (PDF File 147KB)
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