NatWest fixed rate bonds feature:
- Choice of 1 or two year terms
- Minimum opening deoposit of £5,000
- Maximum deposit of £500,000
- 14 day cooling off period where you can cancel your account without an early closure charge
- Need to be aged 16 years or over
- Interest paid monthly
The NatWest fixed rate bond does offer early closure however at a charge of 90 days interest and you need to provide 35 days notice.
As by their very nature bonds require you lock away savings for a predefined period of time, before you invest in one you may want to consider other alternatives as well to decide what you feel would be best for you as well as shopping around to find out about the different fixed rate bonds available.
Alternative saving plans
- Tracker bonds – These are similar to fixed rate bonds, but the rate of interest you earn over the course of the bond may vary, this is because the rate you receive is linked to the base rate set by the Bank of England. Meaning you could have a better or worse interest rate.
- Structured Deposits – Like a bond a structured deposit requires you to lock up your funds for a period of time. They generally offer better rates of interest on bonds but your return is not guaranteed. They are tied to the performance of a stock index or indices, if over the plan the index or indices performs in a certain way as set out in the plan you will get back your original investment back plus an interest payment typically larger than those offered by bonds or savings accounts. However if it does not perform in a certain way set out at the start of the plan you will receive your investment back but will no gains on it, so it is a risk that needs to be carefully considered beforehand.
- Savings Account – If you are looking into how you can earn interest on your savings while maintaining access to them should you ever need them before the end of the term then an instant access savings account may be the solution to you. Although they do tend to offer lower interest rates than bonds or structured deposits, they usually offer unlimited free withdrawals meaning if you should ever need your savings you don’t need to worry about a forfeit for closing the account early.