Nat West 2 year fixed rate bond

Anika_2 · 13 January 2013 at 12:05PM

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

rb10 · 13 January 2013 at 12:09PM

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.

Nat West 2 year fixed rate bond

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