NatWest fixed rate bonds ?

SloughSally

They have a 1 year bond and a 2 year bond available at the moment , but the funding is unlike most other bonds.
Regarding the 1 year bond for new   customers  closing date for applications is 19th November, last date for deposits is 2nd December, and the bond start date is December 3rd.
So would any money deposited before 3rd December earn interest?

Isthisforreal99

Do you have a link to that product as I can't see anything named 'fixed rate bonds'?

There is 1 and 2 year fixed term savings - https://www.natwest.com/savings/fixed-term-savings-account.html

If this is what you mean the summary box says "Interest is calculated daily from the day you open your account"

k12479

That is a bit unusual, as is the ability to withdraw before the fixed term period starts.

On the webpage it says "Interest is calculated daily from the day you open your account..." and in the PDF Information sheet it says "Interest is paid on a tiered basis from the date you open your account..." so yes, money deposited before the 3rd would earn interest.

However, 4.20% for 1 year isn't great, there's a lot of choice up to 4.46%.

SloughSally

It’s strange how it states the fund start date is December 3rd 2025 and  maturity December 3rd 2026, so you it’s going pay interest on funds possibly deposited  over a month before the the fund start date ?
 In fact since interest is paid on the 1st of each month, You’ll get an interest payment (Dec 1st) on funds deposited in November before the bond start date (3rd Dec)

vic_sf49

They did similar with some of their ISAs, a couple of years ago. 

At the time, the Natwest ISA was a market leading 6.0%, so I didn't mind if they had my money longer than the actual 2yr ISA, as it earned me more interest than elsewhere.

I don't remember* coming across that kind of thing, before or since. 

* Rubbish memory alert! 

flaneurs_lobster

I've seen similar "13 month" 1 year fixed savings products at Virgin and Barclays, think they were ISA products but as @vic_sf49 says, memory.......

artyboy

IIRC, a lot of bonds I opened way back in the day used to operate like this, so perhaps they are just a bit old fashioned.

Gift horses etc... take the extra interest and run.

SloughSally

It says interest paid on 1st of each month (today) , but nothing has been paid today.

So still not convinced interest is paid on deposits made before the December 3rd start date of the term, despite it clearly stating interest is paid on funds deposited from the opening of the account.

refluxer

SloughSally said:

It says interest paid on 1st of each month (today) , but nothing has been paid today.

So still not convinced interest is paid on deposits made before the December 3rd start date of the term, despite it clearly stating interest is paid on funds deposited from the opening of the account.

If the bond term doesn't officially start until 3rd December, then they're not going to pay any interest before then. You'll presumably get the interest due on all the deposits you've paid in on 1st Jan. 

SloughSally

Update
Interest has now been added  despite bond term date not starting until tomorrow.So all good .
Bond had to be opened by November 17th funded by December 2nd and Bond start date December 3rd .So my inital total Bond value is an extra £205.10 (interest) and the 12 months starts tomorrow, interest from now added on the 1st of each month and finally on maturity date.