NatWest Fixed Rate Bonds

Features and benefits
Important information

We offer a choice of 1 year and 2 year Fixed Rate Bonds, enabling you to save between £5,000 and £500,000. They could be ideal if you don’t need instant access to your money.

What you need to know

Save between £5,000 - £500,000 and leave it untouched for the term
Bonds start on 19 March 2012
Available to personal NatWest customers aged 18 or over
No partial withdrawals or additional deposits are allowed. Early closure will result in an interest charge equivalent to:

90 days' gross interest for our 1 year Fixed Rate Bond
180 days' gross interest for our 2 year Fixed Rate Bond

You will need to have a NatWest current account or instant access savings accounts (excluding all Cash ISA accounts) for the payment of interest
Interest will be paid at a fixed rate of 2.00% AER/Gross until 19 March 2012
This is a limited offer and may be withdrawn from sale at any time

Our current range of Fixed Rate Bonds:

Term & interest frequency	Interest rate			Start & maturity dates
Term & interest frequency	AER	Gross	Net	Start & maturity dates
1 Year Fixed Rate Bond on balances of £5,000 - £24,999
Annual interest	3.00%	3.00%	2.40%	19 March 2012 - 19 March 2013
Monthly interest	3.00%	2.96%	2.37%	19 March 2012 - 19 March 2013
1 Year Fixed Rate Bond on balances of £25,000 - £500,000
Annual interest	3.20%	3.20%	2.56%	19 March 2012 - 19 March 2013
Monthly interest	3.20%	3.15%	2.52%	19 March 2012 - 19 March 2013
2 Year Fixed Rate Bond on balances of £5,000 - £24,999
Annual interest	3.40%	3.40%	2.72%	19 March 2012 - 19 March 2014
Monthly interest	3.40%	3.35%	2.68%	19 March 2012- 19 March 2014
2 Year Fixed Rate Bond on balances of £25,000 - £500,000
Annual interest	3.70%	3.70%	2.96%	19 March 2012 - 19 March 2014
Monthly interest	3.70%	3.64%	2.91%	19 March 2012 - 19 March 2014

Explanation of interest rates:

Annual Equivalent Rate (AER) - this 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 - this means the interest rate you are paid before the deduction of income tax
Net - this means the interest rate you are paid after the deduction of income tax

See important information about our Fixed Rate Bonds

What you need to know

New customers will be asked to provide proof of identity including verification of address.
As soon as your Fixed Rate Bond application has been opened, the funds will be transferred from your nominated account to your Fixed Rate Bond account.
Annual interest where applicable will be calculated daily and paid into a NatWest current account or NatWest instant access savings account of your choice (excluding all Cash ISA accounts) on the last business day in April and on the last day within the term of the Fixed Rate Bond
Monthly interest where applicable will be calculated daily and paid into a NatWest current account or NatWest instant access savings account of your choice (excluding all Cash ISA accounts) on the last business day of the month and on the last day within the term of the Fixed Rate Bond
No partial withdrawals or additional deposits are allowed. An early closure of the Bond will incur an interest charge.

Taxation

Important information
Please note: The interest payable or tax treatment may be subject to change in the future and depends upon your individual circumstances.

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. You will be responsible for declaring the income to HM Revenue & Customs.