Fixed Rate Bonds

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

• Save between £5,000 - £500,000 and leave it untouched for the term with our 1 and 2 year Fixed Rate Bond
• Save between £2,000 and £1,000,000 with our Fixed Rate Bond:Internet Only Edition
• The 1 and 2 year Fixed Rate Bond is available for application from the 12th May 2012
• Following the processing of your application and the deposit of funds in your nominated account, your Fixed Rate Bond will be opened within 5 working days
• Your Fixed Rate Bond will run from the date of opening until the maturity date
• Available to personal RBS 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 and Fixed Rate Bond: Internet Only Edition
  - 180 days' gross interest for our 2 year Fixed Rate Bond
• You will need to have an RBS current account or instant access savings account (excluding all Cash ISA accounts) for the payment of interest
• This is a limited offer and may be withdrawn from sale at any time

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

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 processed, 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 an RBS current account or 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 an RBS current account or 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 the balance of your Fixed Rate Bond will be paid after the deduction of tax, unless we hold a valid R85 declaration.

Further reading

• Please ensure you have read the Information sheet and summary box
  1 and 2 year Fixed Rate Bond (PDF, 93KB)
• Please ensure you have read the Information sheet and summary box Internet Only Fixed Rate Bond (PDF, 228KB)
• Please also ensure you have read the terms and conditions (PDF, 1.36MB)

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