Index Bonds

Index Bonds allow you to invest your money for a fixed time period typically for 4½ or 6 years. Index Bonds link the return they pay to the performance of a specified index, such as the FTSE 100™ Index, while being designed to return your original 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 (subject to maximum returns) please read on to find out more.

Prepare for your future – call Financial Planning Direct on 0800 051 1867.

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

Index Bonds are designed to return your capital and any interest earned providing the Bond is held until maturity.

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

• Some Index Bonds may allow you to invest for 4½ or 6 years.
• May have a minimum investment amount of as little as £3,000
• ISA Index Bonds are available that allow you to use your current tax year allowance to give tax-efficient returns

Exclusive offers may be available through Financial Planning Direct. To find out more or to discuss the Index Bonds we currently have on sale, call us on 0800 051 1867.

• See important information

• When opening an Index 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.
• An Index Bond can only be closed in exceptional circumstances (see Terms and Conditions for more information).If you close an Index Bond before the maturity date, you are unlikely to receive back the full amount originally invested. Partial withdrawals from the Index Bond are not permitted in any circumstances.
• Funds invested in the Index Bond are not invested directly into the shares of the underlying listed companies of the specified Index. Instead, your funds are held in a treasury reserve account with RBS with interest at maturity linked to the performance of the Index. As you do not invest directly in shares, you will not receive any dividend payments.
• Please be aware that the Index Bond is designed to return your initial Deposit, in full on the Maturity Payment Date only, as long as the Bond is held until maturity. Returns over and above this are dependent on the performance of the specified index. The cost of offering this protection is accounted for in the returns you receive, hence the fixed return even in the event of excessive growth in linked index.
• In the event of RBS being unable to meet its obligations (e.g. if it stops trading or becomes insolvent), you may lose some or all of your money. You may have recourse under the Financial Services Compensation Scheme
• The value of the specified 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.
• RBS 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 deposits that are held in a bank or building society in the UK, the Scheme will cover up to the greater of £50,000 or €50,000 per person. Deposits in all currencies are treated the same. Deposits with RBS, Direct Line, Virgin Money, Lombard, the One Account, Child & Co, Drummonds and Holt’s are all covered by a Single FSA authorisation. This means the total deposits with these firms will count towards the one compensation limit. 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
• References to particular indices are included only to indicate the basis upon which growth is calculated, not to indicate any association between RBS and the third party index provider, or endorsement of the product by the index provider.

• See important information