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Tax free interest means interest payable is exempt from UK income tax.
| Term | Interest payable | Interest rates | Maturity date |
|---|---|---|---|
| AER / Gross rate pa | |||
| 1 Year | Annually | 1.80% | 10th June 2014 |
| 2 Years | Annually | 2.00% | 10th June 2015 |
Keep all your cash ISAs in one place and make it easier to manage all your tax free savings online.
Fixed Rate ISAs are savings accounts that pay you a fixed rate of interest for a fixed number of years. They’re designed for savings that you can afford to put away for the full fixed rate term.
Fixed Rate ISAs offer:
If you need access to your savings you can close your Fixed Rate ISA but you will incur an interest charge equivalent to:
90 days gross interest (1 year Fixed Rate ISA)
180 days gross interest (2 year Fixed Rate ISA)
If the amount of interest charged is more than the interest accrued on the Fixed Rate ISA at the date of closure, this will be deducted from the rest of your account balance. This would mean the amount would be deducted from the capital sum invested. In this situation the closing payment would be less than the amount of money you originally invested in the Fixed Rate ISA account.
Annual Equivalent Rate (AER) 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.
Gross means the interest rate you are paid before the deduction of income tax.
Interest will be paid at the rate of 1.50% AER/Gross (fixed) p.a. until the Fixed Rate ISA start date - 10th June 2013.
We calculate this daily and pay it into your Fixed Rate ISA on the last business day in March.
You can’t subscribe to another cash ISA in the same tax year in which you opened the Fixed Rate ISA. A Fixed Rate ISA is a type of cash ISA.
You have between 16th April to 03rd June to use your 2013/2014 cash ISA allowance to top up your Fixed Rate ISA before the start date. Ensure funds are cleared and in the account by these dates. No additional deposits are allowed after 03rd June 2013.
Your 2013/2014 cash ISA allowance can be used by crediting funds or if you have already used your 2013/2014 allowance in another cash ISA, by transferring this cash ISA. Remember you can only pay into one cash ISA in each tax year but funds can be transferred from previous years’ cash ISA subscriptions.
If you make a subscription but do not invest the full ISA subscription limit for a tax year into the Fixed Rate ISA, you will not be able to make further subscriptions for that tax year into any other cash ISA.
If you need access to your savings you can close your Fixed Rate ISA but you will incur an interest charge equivalent to:
If the amount of interest charged is more than the interest accrued on the Fixed Rate ISA at the date of closure, this will be deducted from the rest of your account balance. This would mean the amount would be deducted from the capital sum invested. In this situation the closing payment would be less than the amount of money you originally invested in the Fixed Rate ISA account.
On maturity your Fixed Rate ISA account will automatically convert into a standard cash ISA. You can:
A. Yes. Withdrawals are not allowed but if you need access to your savings you can close your Fixed Rate ISA and incur an interest charge. More on interest charges
A. Yes. You can transfer cash ISAs from other providers and/or combine cash ISAs held with us. You can find details here.
A. You can’t pay into more than one cash ISA in the current tax year. However, in this case you can transfer the other provider’s cash ISA into a NatWest cash ISA.
As it is a current tax year ISA, you’ll only have the option of transferring the whole balance to NatWest, i.e. £1,000 in this example. Then, you can top-up your new NatWest cash ISA by £4,760 to £5,760.
A. No, once your account has been opened we’ll write to you with instructions on how to make a deposit.
A. If you’ve not used any of your cash ISA allowance for the tax year, it will show the 'Deposits allowed this year'. If you have used some, but not all, of your allowance, it will show the 'Deposits allowed this year' and 'Deposits so far this year'.
If you have used all of your cash ISA allowance for the tax year, it will show the 'Deposits so far this year'.
The interest rate you receive is dependant on the term you choose.
Minimum balance £1,000
| Interest frequency | Interest Rate | Start date and maturity dates | |
|---|---|---|---|
| AER | Gross pa | ||
| 1 Year Fixed Rate ISA | |||
| Annual | 1.80% | 1.80% | 10 June 2013 – 10 June 2014 |
| 2 Year Fixed Rate ISA | |||
| Annual | 2.00% | 2.00% | 10 June 2013 – 10 June 2015 |
Interest will be paid at the rate of 1.50% AER/ Gross (fixed) p.a. until the Fixed Rate ISA start date - 10 June 2013
Annual interest is calculated daily and paid into your Fixed Rate ISA on the last business day in March.
Annual Equivalent Rate (AER). This is a notional rate used for interest bearing accounts which illustrates what the interest would be if paid and compounded each year. It helps you to compare the effective rates of credit interest on different accounts.
Gross Rate. This means the interest rate you are paid before the deduction of income tax.
Our online banking service helps you:
To sign up for online banking you need to have a NatWest account and be aged 16 or over.
System updates mean that online banking is unavailable for short periods in the early hours of the morning.
Mobile banking makes looking after your savings when you’re out and about even easier:
NatWest doesn’t charge for any mobile banking services, however, your mobile network provider may charge depending on your tariff.
Standard data download charges may apply. Please contact your network operator for details.
An ISA is a tax efficient way to save. It stands for Individual Savings Account. With an ISA you pay little or no tax on the interest your savings and investments make.
Paying money into an ISA is called a subscription. You can subscribe to one cash ISA and one stocks and shares ISA in every tax year, and there’s a maximum amount you can pay into each one.
With some cash ISAs, you have instant access to your money. With others you'll pay an interest charge if you withdraw your money before the end of the term.
It’s important to remember that ISA allowance limits apply to everyone on an individual basis. If you’re married or in a relationship, you can both have an ISA, each with the full allowance.
There’s a yearly limit on the amount you can put in to an ISA. For the 2012/13 tax year the limit is £11,280. You can use this allowance in a variety of ways. You can:
Save up to £5,640 in a cash ISA
or
Save up to £11,280 in a stocks and shares ISA
or
Save up to £5,640 in a cash ISA and put the remainder of the £11,280 allowance into a stocks and shares ISA
If you put less than the full allowance into a cash ISA, you can use the rest of that limit to add into your stocks and shares ISA limit. For example, if you only choose to put £2,000 into a NatWest Fixed Rate ISA, you can put up to £9,280 into a stocks and shares ISA.
If you withdraw money from your ISA, you cannot reinvest it in the same tax year if your total deposits will exceed your yearly allowance. Partial withdrawals from a NatWest Fixed Rate ISA are not allowed. Early closure will result in an interest charge.
There are two types of cash ISA:
Your choice of stocks and shares ISA
You can choose from three types of stocks and shares ISA:
Upon maturity your Fixed Rate ISA account will automatically convert into a standard cash ISA.
Upon maturity you can:
You can subscribe to a fixed rate cash ISA for a single tax year, but it can be fixed for a longer term, sometimes up to five years. In the next tax year, you can then open a new cash ISA which can either be fixed rate or variable rate.
You can keep a variable rate cash ISA and a stocks and shares ISA open year after year, paying into them in subsequent tax-years, up to your yearly allowance. However, if an entire tax-year goes by without a deposit being made into your cash ISA, you cannot make any further payments into it until you have reactivated your account.
To reactivate your cash ISA, you simply need to complete a reactivation form.
You can only open one cash and one stocks and shares ISA each tax year. If you want to move your current or previous cash ISA balances between providers, you can, without losing your tax-free entitlement.
Some cash ISA transfers can take up to 15 working days to process. Your new ISA provider will start to pay your interest from day 16 if the transfer process is not complete within this period. This lets you start earning interest from your new cash ISA account faster.
Don't forget to make sure that your new cash ISA provider allows transfers in, and that you open your new account in advance. It is possible to transfer your cash ISA balances into a stocks and shares ISA, however it is not possible to transfer stocks and shares ISA balances into a cash ISA.
There are a number of important factors which need to be considered before transferring a stocks & shares ISA. For more information on stocks & shares ISAs take a look at Tax efficient investments.
If you already subscribe to an ISA in this tax year, in the new tax year, you can either continue to save in your existing ISA, or you can open a new ISA.
You can subscribe to one cash ISA and one stocks and shares ISA in a tax year. Don’t forget, the tax year ends on 5 April – make sure you take advantage of this year’s allowance before it’s too late.
Setting up a new NatWest Fixed Rate ISA is simple and you can apply online. You’ll need the following information to set up a Fixed Rate ISA:
All documents should be the most recent you have, and no more than six months old.
We have made transferring your ISA simple for our customers. Existing ISA customers can transfer cash ISAs with other providers to NatWest:
If you have an ISA with us, find out more information on how to transfer your ISA.
You will need to open a NatWest e-ISA , Cash ISA or Fixed Rate ISA account before you can transfer any funds into it. You can then transfer your existing ISA easily.
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.
NatWest Personal and Private Banking - Terms and Conditions ( PDF File 938KB)
Fixed Rate ISA Information Sheet ( PDF File 103KB)
Tax reliefs referred to are those applying under current UK legislation, which may change. The availability of any tax relief will depend on your individual circumstances. The rate of interest depends on your individual circumstances and may be subject to change in the future.
If you need access to your savings you can close your Fixed Rate ISA but you will incur an interest charge equivalent to:
If the amount of interest charged is more than the interest accrued on the Fixed Rate ISA at the date of closure, this will be deducted from the rest of your account balance. This would mean the amount would be deducted from the capital sum invested. In this situation the closing payment would be less than the amount of money you originally invested in the Fixed Rate ISA account.
| Closing date for applications (your Fixed Rate ISA must be opened by this date) | 20 May 2013 |
|---|---|
| Last day for receipt by us of external ISA transfer requests | 20 May 2013 |
| Dates for receipt by us of 2013/2014 tax year subscriptions | 03 June 2013 |
| Last date for receipt by us of NatWest internal transfer requests | 03 June 2013 |
| Start date | 10 June 2013 |
| Certificate of deposit will be sent to you by | 03 July 2013 |
| Key Product Information for NatWest Fixed Rate ISA | |
|---|---|
| Account Name | NatWest Fixed Rate ISA |
| Interest Rates | Fixed Rate ISA interest rates vary from issue to issue. Current rates can be found here and in the Information Sheet for that Fixed Rate ISA issue available from your Branch. |
| Tax Status | Interest earned will be free of UK income tax. Please note that when choosing the monthly interest option, interest is paid into a nominated non ISA account, which will not be covered by the ISA Regulations and so any interest earned on the funds in the nominated account will be subject to tax. |
| Conditions for bonus payment | N/A |
| Withdrawal Arrangements | No withdrawals are permitted after funds are deposited into the Fixed Rate ISA account. If you require access to money in your Fixed Rate ISA before the maturity date, the Fixed Rate ISA account will be closed and any money not withdrawn or transferred will be deposited into a Cash ISA. Interest will be charged for closure or transfer of the Fixed Rate ISA prior to maturity. Please refer to the Information Sheet for further information. |
| Access | Branch, online and by phone. |
Funds deposited will earn one of the below variable interest rates up until the start date of the Fixed Rate ISA.
| Balance | AER (variable) | Gross pa |
|---|---|---|
| £50,000+ | 2.00% | 1.98% |
| £27,000 - £49,999 | 1.75% | 1.74% |
| £22,000 - £26,999 | 1.10% | 1.09% |
| £15,000 - £21,999 | 0.95% | 0.95% |
| £9,000 - £14,999 | 0.75% | 0.75% |
| £1 - £8,999 | 0.50% | 0.50% |
If you want to pay into your ISA for this tax year (2011/2012) you need to have your account opened and funds in the account by 5th April 2012. Any applications that are completed after the 5th April will be open and ready to use for the 2012/2013 tax year.
After applying you will receive an account number and sort code or an application reference number.
If you receive an account number and sort code you can pay into your ISA straightaway using the account number and sort code details. Your account and any funds deposited will show in your online banking within 24 hours of your account being opened.
If you receive an application reference we recommend that you take this along with the following identification documents and complete your application at your branch by Thursday 5th April 2012. Find your local branch.
Make the most of your ISA limit this tax year (2011/2012) by making sure you’ve paid in your money by midnight on the 5th of April 2012.
Your eligible deposits with National Westminster Bank Plc 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 (PDF 3MB) or visit www.fscs.org.uk
It's easy to apply for a Fixed Rate ISA. There are three ways to apply:
Apply online for an Instant Saver
Call us on 0800 200 400. Customers with hearing and speech impairments can contact us by Minicom number 0800 917 0526.
Lines are open: Monday to Friday 8am-8pm, except public holidays, and Saturdays 9am-6pm. Calls may be recorded.
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