Fixed Rate Deposits

April 2012 Issue 27

We understand that a steady cash flow is vital for running a business on a day-to-day basis, as well as helping businesses achieve their long-term ambitions. That’s why we offer a simple solution to maximising the returns on any cash reserves your business holds. Through our General, Enhanced and Stepped Fixed Rate Deposits, we provide a secure return over a range of fixed terms, making your business goals easier to achieve.

They are available from 16 April 2012 and are offered on a first come, first served basis. This is a limited offer which can be withdrawn at any time. The offer will close no later than 16 May 2012.

Fixed Rate Deposits explained

• The Fixed Rate Deposits offer a fixed interest rate for the full term
• There is a minimum deposit of £5,000 for each Fixed Rate Deposit
• You may only hold one of each Fixed Rate Deposit, unless it will be used to hold client monies, in which case you may hold one of each Fixed Rate Deposit per client
• Only available for customers with a maximum turnover of £25 million (the consolidated annual turnover of the group for the 12 months immediately preceding the application date)
• The Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year. Net is the interest paid after the deduction of tax
• If you do not hold a suitable NatWest instant access account for settlement purposes we will open one as part of your Fixed Rate Deposit application
• Once your funds have been transferred into your Fixed Rate Deposit account, interest will be calculated from that date until the maturity date

Put your cash deposits to work

The following tables detail the rates that apply to the General, Enhanced and Stepped Fixed Rate Deposits depending on their term. Interest is calculated daily and paid on maturity.

Partial withdrawals are not permitted. Early termination of the General Fixed Rate Deposit is permitted with 95 days’ written notice and will incur an Early Closure Fee.

No withdrawals or early terminations are permitted with the Enhanced Fixed Rate Deposit before the end of the term. Interest for General and Enhanced Fixed Rate Deposits is calculated daily and paid at maturity into your nominated account.

The AER rate for the 24 month term is 3.17%.

The AER rate for the 36 month term is 3.47%.

For both Stepped Fixed Rate Deposits partial withdrawals are not permitted. No withdrawals or early terminations are permitted for the 1st year. After the 1st year termination is permitted with 95 days’ written notice and will incur an Early Closure Fee. Interest is calculated daily and paid monthly into your nominated NatWest account.

The Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year. Net is the interest paid after the deduction of tax. Gross/AER based on funds deposited on 23 May 2012.

Further Important Information for General and Stepped Fixed Rate Deposits only

Early termination of a General Fixed Rate Deposit will incur an Early Closure Fee equal to 60 days gross interest for the 6 month and 12 month Fixed Rate Deposits at the rates set out in the table above. This fee applies from the date funds were transferred into the Fixed Rate Deposit account.

No withdrawals or early terminations of the Stepped Fixed Rate Deposit are permitted in the first year. Early termination in year 2 or 3 will incur an early closure fee equal to 180 day’s gross interest.

The Early Closure Fee will be deducted from the interest accrued up to the closing date. If the Early Closure Fee is more than the accrued interest, the Bank will deduct the shortfall from the capital component of the Fixed Rate Deposit.

Further Important Information for General, Stepped and Enhanced Fixed Rate Deposits

On the banking day following maturity or early closure, capital and interest (where applicable) is paid into your nominated NatWest account.

Funds must be available on the date of application and will be transferred to the Fixed Rate Deposit account upon the processing of your application.

The Fixed Rate Deposit is not available to private individuals.