Fixed rate bonds

4.00% AER for two years

Looking to save £5,000 or more? Our Two Year Fixed Rate Bond pays 4.00% AER or for balances of £50,000+ 5.00% AER


Our Two Year Fixed Rate Bond could be the perfect home for your lump sum – and there’s no maximum deposit.

But you'd better be quick. The bond starts on 22nd December 2008, but is only available on a first come, first served basis. So we may have to withdraw it sooner.

Two Year Fixed Rate Bond – the benefits


  • 4.00% AER (or for balances of £50k + 5.00% AER) - if you have interest paid annually
  • Monthly interest option - need a monthly income? 3.93% gross or 4.89% gross for balances £50k +
  • Invest from £5,000 - and there’s no maximum investment
  • Before the bond - Any deposits made before 22 December 2008 (i.e. before the start date of the Bond) will attract a rate:
    - a rate equivalent to 4.25% gross / 3.40% net p.a. up until 3 December 2008; and
    - a rate equivalent to 0.25% below Bank of England Base Rate p.a. until 22 December 2008.
  • Open two or more bonds - need flexibility? This could be the answer you need
  • Straightforward - the bond is designed to be easy to open, although you will need an RBS current account or certain instant access savings accounts excluding cash ISA and Direct Saver. Find out more by reading our important information

Things you should know


  • Maturity date - 22 December 2010
  • Withdrawal penalty - No Partial withdrawals are allowed. An early closure of the bond will incur an early redemption fee equivalent to 90 days gross interest.
  • RBS account - you’ll need to have an RBS current account or instant access savings account. The only savings accounts you can’t use are Direct Saver and Instant Access Cash ISA.
back to top
AmountGross Rate % p.a.AER%Net Rate % p.a.
Two Year Fixed Rate Bond Issue 283 (Annual Interest)
Start Date: 22 December 2008   Maturity Date: 22 December 2010
£5,000 - £24,9994.004.003.20
£25,000 - £49,9994.504.503.60
£50,000 +5.005.004.00
Any deposits made before 22 December 2008 (i.e. before the start date of the Bond) will attract a rate:
- a rate equivalent to 4.25% gross / 3.40% net p.a. up until 3 December 2008; and
- a rate equivalent to 0.25% below Bank of England Base Rate p.a. until 22 December 2008.
Two Year Fixed Rate Bond Issue 283 (Monthly Interest)
Start Date: 22 December 2008   Maturity Date: 22 December 2010
£5,000 - £24,9993.93n/a3.14
£25,000 - £49,9994.41n/a3.53
£50,000 +4.89n/a3.91
Any deposits made before 22 December 2008 (i.e. before the start date of the Bond) will attract a rate:
- a rate equivalent to 4.25% gross / 3.40% net p.a. up until 3 December 2008; and
- a rate equivalent to 0.25% below Bank of England Base Rate p.a. until 22 December 2008.

Fixed Rate Bond - Withdrawal conditions:
No withdrawals are allowed from a bond account.

The Annual Equivalent Rate (AER) is a notional rate which illustrates the gross interest as if paid and compounded on an annual basis.

The AER is not given for the monthly interest option as it is not possible for monthly interest to be paid into nor compounded in a Fixed Rate Bond.

Gross is the interest paid before the deduction of tax.

Tax
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.

back to top

Important information

  • Maturity date - 22 December 2010
  • Withdrawal penalty - No Partial withdrawals are allowed. .An early closure of the bond will incur an early redemption fee equivalent to 90 days gross interest.
  • RBS account - you’ll need to have an RBS current account or instant access savings account. The only savings accounts you can’t use are Direct Saver and Instant Access Cash ISA.

New customers will be asked to provide proof of identity including verification of address.

Calls may be recorded.

The Financial Services Compensation Scheme, set up under the Financial Services and Markets Act 2000, covers your account. For money held in a bank or building society in the UK the scheme will cover up to £50,000 of your claim. Most people who make deposits, including individuals and small firms, are covered. Deposits in all currencies are treated the same. For more information on the conditions of the scheme, please contact the FSCS at www.fscs.org.uk.

back to top