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Nat West 2 year fixed rate bond
Anika_2
Posts: 2 Newbie
Hi,
my husband and I deposited £5k into a 2 year fixed rate bond in March 2012. We have since moved to Australia and although we'd hoped at the time of depositing the money that we wouldn't need it before maturity we do need it now.
I have read that early closure of the bond will cost the equivalent to 180 days gross interest but can't quite work out how much this would equate to.
The interest on the bond is as follows: 3.45% gross, 2.76% net, 3.45% AER.
In the letter it also states that "the nominated account cannot be closed prior to the bond's maturity date" but then it also states that if closed early the fee would equate to 180 days gross interest. Little bit confused so any help would be appreciated.
Thanks
my husband and I deposited £5k into a 2 year fixed rate bond in March 2012. We have since moved to Australia and although we'd hoped at the time of depositing the money that we wouldn't need it before maturity we do need it now.
I have read that early closure of the bond will cost the equivalent to 180 days gross interest but can't quite work out how much this would equate to.
The interest on the bond is as follows: 3.45% gross, 2.76% net, 3.45% AER.
In the letter it also states that "the nominated account cannot be closed prior to the bond's maturity date" but then it also states that if closed early the fee would equate to 180 days gross interest. Little bit confused so any help would be appreciated.
Thanks
0
Comments
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The nominated account will be a different account with Natwest (probably an instant access savings account, unless you are unfortunate enough to bank with them). This is the account that, on closure or maturity, Natwest will put the money from the bond into.
Quite simply, if you close the bond now, the interest that you receive will be reduced by £5000 * 3.45% / 365 * 180 = £85.0
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