Guaranteed Bonds

Guaranteed Bonds allow you to invest your money for fixed time period typically between 4 and 6 years. Guaranteed Bonds link the return they pay to the performance of a specified index, such as the FTSE 100™ Index, while being designed to offer you complete protection for your original capital investment, provided you hold the Bond for the full term. So if you would like to benefit from the potential growth in the stock market please read on to find out more.

Prepare for your future – call Financial Planning Direct on 0800 051 1868.

The Guaranteed Bonds are lump sum investments linked to the performance of a specified index. An example of an index is the FTSE 100™ Index.

Your capital and interest earned is guaranteed, irrespective of how the specified Index performs, as long as the Bond is held until maturity.

For more information download the Guaranteed Bonds Product Guide (PDF, 602KB)

The Guaranteed bonds we offer are limited availability and features such as the length of time the money is invested will change depending on what Guaranteed Bonds we have on sale at that time.

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• Some Guaranteed Bonds may allow you to invest for 4 years others up to 6 years
• May have a minimum investment amount of as little as £3,000
• May be linked to a saving account with a special rate of interest

Find out what Guaranteed Bonds we currently have on sale call Financial Planning Direct on 0800 051 1868

• When opening a Guaranteed Bond you should remember that you are committing your money for a fixed term. This time period will be documented in the Details of Terms. There is no cooling off period for you to change your mind and get your money back once your application has been accepted.
• A Guaranteed Bond can only be closed in exceptional circumstances (see Terms and Conditions for more information). If you close a Guaranteed Bond before the maturity date, you may not receive back the full amount originally invested. Partial withdrawals from the Guaranteed Bond are not permitted in any circumstances.
• Funds invested in the Guaranteed Bond are not invested directly into the shares of the underlying listed companies of the specified Index. Instead, your funds are held in a deposit account with interest at maturity linked to the performance of the Index. As the Guaranteed Bond does not invest directly in shares, you will not receive any dividend payments.
• The value of the Index can fall as well as rise, and past performance is not a guide to future performance.
• Inflation will reduce the buying power of your money.
• The interest earned on the Guaranteed Bond will be paid at maturity and all interest earned is treated as taxable income. If you are entitled to receive gross interest, you can do so by completing an HMRC R85 form. If the Guaranteed Bond is to be opened in joint names, where a party is a non-tax payer, interest earned will be paid net. Reimbursement of tax will then have to be claimed back in the usual way.
• Please be aware that the term ‘guarantee’ refers only to the return of your initial investment, as long as the Guaranteed Bond is held until maturity. Returns over and above that are not guaranteed and are dependent on the performance of the specified Index.
• NatWest is a member of the Financial Services Compensation Scheme (FSCS). The Scheme can pay compensation to customers if they are eligible and a regulated firm is unable to pay claims against it, usually if the firm stops trading or is insolvent. Compensation limits apply depending on the type of claim. For Investments this is a maximum of £48,000 per person. 100% of the first £30,000 and 90% of the next £20,000. Most retail consumers (this includes private individuals and some small businesses) are eligible under the Scheme. For further information on the conditions governing compensation and details on how to apply please refer to the FSCS at www.fscs.org.uk
• This investment aims to return all the original money invested at the end of its term, regardless of any fall in index level. This guarantee is offered by NatWest. The cost of offering this protection will affect the returns you get, hence the fixed maximum return even in the event of excessive growth in the linked index. In the event of NatWest being unable to meet this guarantee it is important to note that not all of the money you invested may be covered by the Financial Services Compensation Scheme (FSCS) due to the limits referred to above. Consequently there is still a chance you could lose some of your original money.