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Fixed Rate ISA
Choose a savings term and enjoy fixed interest rates for 1, 2 or 3 years
- Earn from 2.40% to 3.60% AER tax free - standard rates
- Earn from 3.60% to 3.80% AER tax free - Preferential rate available for 2 or 3 year term when you transfer a cash ISA from another provider (excluding NatWest & RBS)
- Interest will be paid at the rate of 2% AER/Gross (fixed) p.a. until the Fixed Rate ISA start date - 4th July 2012
- Transfers in allowed – bring all your cash ISAs together in one place
- Save up to £5,640 tax free in your Fixed Rate ISA for the 2012/ 2013 tax year. Minimum Deposit £1,000
- Apply from 2nd May to 31st May 2012 – this is a limited offer and may be withdrawn at any time
- Partial withdrawals not allowed. Early closure will result in an interest charge
Tax free interest means interest payable is exempt from UK income tax.
Discover why people save with a NatWest Fixed Rate ISA
Features and benefits
Why choose a NatWest Fixed Rate ISA?
With our Fixed Rate ISA you leave your money in your ISA account for one, two or three years. The interest you earn on your savings is fixed for the term of your saving – the longer you save, the higher the interest rate.
NEW preferential interest rates are available if you transfer your cash ISA from another provider to NatWest (excluding NatWest & RBS).
Fixed Rate ISA interest rates
| Term | Interest payable | Standard rates | Preferential rates for cash ISA transfers | Maturity date | ||
|---|---|---|---|---|---|---|
| AER | Gross rate pa | AER | Gross rate pa | |||
| 1 Year | Annually | 2.40% | 2.40% | Not Available | Not Available | 04 July 2013 |
| 2 Years | Annually | 3.40% | 3.40% | 3.60% | 3.60% | 04 July 2014 |
| 3 Years | Annually | 3.60% | 3.60% | 3.80% | 3.80% | 04 July 2015 |
| 3 Years | Monthly | 3.60% | 3.54% | 3.80% | 3.74% | 04 July 2015 |
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ISAs explained
Learn more about saving tax efficiently with a cash ISA, the rules about how much you can pay in, and more...
Transfer your existing ISAs
Keep all your cash ISAs in one place and make it easier to manage all your tax free savings online.
Important information
Key dates and information about Fixed Rate ISAs.
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Other ISA options
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Features and benefits
Don't need instant access to you money? A Fixed Rate ISA could be right for you.
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:
- Fixed rates of interest - you'll know in advance what your tax free savings will earn
- A range of terms – with RBS you can save for one, two and three years
- Competitive interest rates - rates for fixed term ISAs are generally better than the rates you’ll find with instant access accounts
Withdrawals are not allowed. If you wish to access your funds before the end of the term, you can close your account but an interest charge will apply. There is an interest charge if you wish to access your funds early.
If you want to take advantage of this Fixed Rate ISA you must open your account no later than 31 May 2012.
Interest paid before the start date
Interest will be paid at the rate of 2% AER/Gross (fixed) p.a. until the Fixed Rate ISA start date - 04 July 2012.
Monthly interest
Monthly interest is available for the 3 Year Fixed Rate ISA. If you select monthly interest you will need to have an NatWest current account or certain instant access savings accounts (excluding our ISA or e-ISA accounts) open before you apply. Your interest will be paid monthly into this account.
Annual interest
We calculate this daily and pay it into your Fixed Rate ISA on the last business day in March.
Tax year subscriptions
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.
Top ups
You have until 29 June 2012 to use your 2012/2013 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 29 June 2012.
Withdrawals are not allowed
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)
- 270 days gross interest (3 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.
At the end of the fixed term
On maturity your Fixed Rate ISA account will automatically convert into a standard cash ISA. You can:
- Reinvest into a new Fixed Rate ISA (subject to availability) and add new funds if appropriate
- Leave your money in the standard cash ISA
Preferential interest rates
These are available if you transfer your cash ISA from another provider (excluding NatWest or RBS). The interest rate is applied to the total balance which can include any deposit or transfer from existing NatWest or RBS cash ISAs. Transfers from existing NatWest or RBS cash ISAs only, without transfer in from another cash ISA provider to the Fixed Rate ISA will not qualify.
- Are there any penalties if I withdraw money before the end of the term?
- Can I transfer money in from more than one bank or building society?
- I’ve paid £1,000 of my current tax year allowance into a cash ISA with another provider. Can I open an RBS Fixed rate ISA and pay in the remaining £4,640?
- Do I need to send a cheque for my initial deposit and who should I make it payable to?
- What should I enter in the initial deposit section if I have already fully subscribed my tax-free allowance for the year?
Q. Are there any penalties if I withdraw money before the end of the term?
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
Q. Can I transfer money in from more than one cash ISA?
A. Yes. Simply fill out an ISA transfer form ( PDF, 53KB) for each cash ISA you want to transfer.
Q. I’ve paid £1,000 of my current tax year allowance into a cash ISA with another provider. Can I open a NatWest Cash ISA and pay in the remaining £4,640?
A. No, you can’t pay into more than one cash ISA in a tax year. However, you can pay the remainder of your annual allowance into your existing cash ISA with the other provider and then transfer it over to us.
Q. Do I need to send a cheque for my initial deposit and who should I make it payable to?
A. No, once your account has been opened we’ll write to you with instructions on how to make a deposit.
Q. What should I enter in the initial deposit section if I’ve already fully subscribed my tax-free allowance for the year?
A. Key in £1 initial deposit, select payment method cheque/cash and click that you do not wish to make regular savings. This will let you move through the screens. By enclosing the transfer form with your application we will be aware that you do not wish to deposit £1 therefore you will not be oversubscribing to your ISA.
Q. I’m registered with Online Banking, how do I check what my cash ISA limit is?
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'.
Fixed Rate ISA interest rates
Interest rates
The interest rate you receive is dependant on the term you choose and whether you transfer your cash ISA from another ISA provider (excluding NatWest or RBS).
Standard Interest Rates
Minimum balance £1,000
| Interest frequency | Interest Rate | Start date and maturity dates | |
|---|---|---|---|
| AER | Gross pa | ||
| 1 Year Fixed Rate ISA | |||
| Annual | 2.40% | 2.40% | 04 July 2012 – 04 July 2013 |
| 2 Year Fixed Rate ISA | |||
| Annual | 3.40% | 3.40% | 04 July 2012 – 04 July 2014 |
| 3 Year Fixed Rate ISA | |||
| Annual | 3.60% | 3.60% | 04 July 2012 – 04 July 2015 |
| Monthly | 3.60% | 3.54% | 04 July 2012 – 04 July 2015 |
Preferential Interest Rates
The following preferential interest rates are only applicable if you transfer your cash ISA from another cash ISA provider (excluding NatWest or RBS), and the interest rate is applied to the total balance which can include any deposit or transfer from existing NatWest or RBS cash ISAs.
Transfers from existing NatWest or RBS cash ISAs only, without transfer-in from another cash ISA provider to the Fixed Rate ISA will not qualify.
Minimum balance £1,000.
| Interest frequency | Interest Rate | Start date and maturity dates | |
|---|---|---|---|
| AER | Gross pa | ||
| 1 Year Fixed Rate ISA | |||
| Annual | Not Available | Not Available | Not Available |
| 2 Year Fixed Rate ISA | |||
| Annual | 3.60% | 3.60% | 04 July 2012 – 04 July 2014 |
| 3 Year Fixed Rate ISA | |||
| Annual | 3.80% | 3.80% | 04 July 2012 – 04 July 2015 |
| Monthly | 3.80% | 3.74% | 04 July 2012 – 04 July 2015 |
Pre start rate for all Fixed Rate ISAs
Interest will be paid at the rate of 2% AER/ Gross (fixed) p.a. until the Fixed Rate ISA start date - 04 July 2012
Annual interest payments
Annual interest is calculated daily and paid into your Fixed Rate ISA on the last business day in March.
Monthly interest payments
Where interest is paid monthly it will be calculated daily and paid on the last working day of every month into your nominated account and upon maturity. Once your interest is paid away from your Fixed Rate ISA it will no longer be part of your cash ISA and so any interest earned on the funds in your nominated account will be subject to tax.
You will need to have a NatWest current account or certain instant access savings accounts (excluding our ISA or eSavings accounts) open before you apply. Your interest will be paid monthly into this account.
Common definitions
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.
Online and mobile banking
We're the 2011 Your Money Best Online Banking Provider
Our online banking service helps you:
- Manage your account - check your balance
- Bank when it suits you - day and night
- Stay safe - get an additional layer of security with our free security software
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 for iPhone, iPad, BlackBerry and Android
Mobile banking makes looking after your savings when you’re out and about even easier:
- Mini statements − see your last six transactions for your Fixed Rate ISA and your other NatWest accounts
- Near me − locate NatWest branches and cash machines
To use mobile banking you must:
- Be a NatWest customer who is registered for Online Banking
- Have a NatWest personal account with a debit card
- Be over age 16 and have a mainland UK mobile number starting 07
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.
ISA Guide
- What is an ISA and who can have one?
- How much can I put in to an ISA?
- Making withdrawals
- Choosing an ISA
- What happens to my ISA in the future?
- What to do next
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.
There are two types of ISA:
- Cash ISAs — are tax-free. Interest payable is exempt from UK income tax. NatWest Fixed Rate ISA is a type of cash ISA.
- Stocks and shares ISAs - are tax efficient. They are a medium to long term investment so they should be held for at least five years. With stocks and shares ISAs, the value of your investment and any income you receive can go down as well as up and you may not get back your original investment.
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.
To subscribe to an ISA:
- You must be aged 16 or over, or 18 or over to hold a stocks and shares ISA
- You must be a resident and ordinarily resident in the UK
- You can subscribe to one cash ISA and one stocks and shares ISA in a tax year, but there are limits to how much you can save in each ISA.
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:
- Variable Rate ISAs – where the interest rate can move up and down. They normally give you instant access to your money or a short notice period.
- Fixed Rate ISAs - where the interest rate is fixed for a period of time, and conditions often apply if you want to withdraw your money early
Your choice of stocks and shares ISA
You can choose from three types of stocks and shares ISA:
- Self-Select ISAs, where you choose what you want to invest in
- Actively Managed ISAs, where a team of experts manage your investments for you
- Passively Managed ISAs, (also known as tracker ISAs) where your money is invested so that it tracks a particular market or index, such as the FTSE 100.
With stocks and shares ISAs, the value of your investment and any income you may receive can go down as well as up and you may not get back your original investment.
When a Fixed Rate ISA matures
Upon maturity your Fixed Rate ISA account will automatically convert into a standard cash ISA.
Upon maturity you can:
- Reinvest into a new Fixed Rate ISA (subject to availability) and add new funds if appropriate
- Leave funds in the cash ISA
Making future subscriptions
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.
How to reactivate your cash ISA
To reactivate your cash ISA, you simply need to complete a reactivation form.
Transferring an ISA
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:
- Your National Insurance number
- One form of evidence of your identity – such as a current passport, full UK driving licence, a benefit book or UK armed forces identity card
- One form of evidence of your address – such as an original gas, electricity, phone or council tax bill, an original bank or building society statement
All documents should be the most recent you have, and no more than six months old.
How to transfer your existing cash ISAs to NatWest
It’s easy to transfer your existing cash ISAs (including TESSA ISAs) to NatWest. Here’s how:
Once your new cash ISA is open, simply complete an ISA transfer form ( PDF File 76KB) for each cash ISA you want to transfer. Print it, and send it to:
Central Tax Unit
9th Floor, 1 Hardman Boulevard
Manchester M3 3AQ
If you'd like more information on how to transfer your ISA, here is a simple guide ( PDF) provided by the British Bankers Association.
How long does it take?
Your existing ISA provider has a maximum of five working days, or to the end of any required notice period, after receiving your transfer request to send your ISA monies to us. This period is specified within the ISA Regulations and Her Majesty’s Revenue & Customs (HMRC) ISA Guidance Notes for ISA Managers.
Partial transfers
If you only want to transfer part of your cash ISA balance to your NatWest ISA, you should first check with your existing ISA provider as their terms and conditions may not allow partial transfers.
Important information
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 relief
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.
Monthly interest
Monthly interest is available for the 3 Year Fixed Rate ISA. If you select monthly interest you will need to have an NatWest current account or certain instant access savings accounts (excluding our ISA or e-ISA accounts) open before you apply. Your interest will be paid monthly into this account.
Withdrawals are not allowed
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)
- 270 days gross interest (3 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.
Key dates for your application
| Closing date for applications (your Fixed Rate ISA must be opened by this date) | 31 May 2012 |
|---|---|
| Last day for receipt by us of external ISA transfer requests | 31 May 2012 |
| Last date for receipt by us of 2012/2013 tax year subscriptions | 29 June 2012 |
| Last date for receipt by us of NatWest internal transfer requests | 29 June 2012 |
| Start date | 04 July 2012 |
Summary box information
| 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. |
Cash ISA Standard Rates
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% |
Tax year deadline
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.