Terms and Conditions: Earn 4.75% AER (4.65% Gross p.a.). NatWest’s Fixed Term Savings Rates are 4.15% AER/4.07% Gross p.a.) fixed for 1 year and 4.75% AER/4.65% Gross p.a.) fixed for 2 years. Offer available until 5pm on 2nd September 2026 for new customers and 7th September 2026 for existing customers. Please be aware that this offer can be withdrawn at any time due to limited availability. Interest is paid monthly and on maturity. This account is for sole applicants only and cannot be opened in joint names. Minimum deposit £1. Maximum deposit £99,999. You can make additional payments or withdrawals from your account until 3:30pm on 21st September 2026. After this date partial withdrawals are not allowed. If you want to make a withdrawal after this time and before the Maturity Date, you must close your account by giving 35 days’ written notice to your branch. Early Closure Charge may apply. The Early Closure Charge will be the lower of the amount of interest earned on your account or 90 days’ interest. Interest will automatically be paid into your Fixed Term Savings Account. You can choose to have interest paid into another Nominated Account. This must be a NatWest personal current or savings account with instant access (other than a cash ISA) held in your name at the same branch as your Fixed Term Savings Account. If interest is paid into your Nominated Account, you can access it the following day. You must be 16 or over and a UK resident. FSCS protected.
Details
Interest Paid
Monthly
Maximum Balance
£99,000
Minimum Age
16
UK Resident
Yes
2 Year Fixed Rate Bond - Tier 1
Interest AER4.75%
Min deposit£1
Term2 Years
2 Year Fixed Rate Bond - Tier 1Royal Bank of Scotland
Terms and Conditions: Earn 4.75% AER (4.65% Gross p.a.). Royal Bank of Scotland's Fixed Term Savings Rates are 4.15% AER/4.07% Gross p.a.) fixed for 1 year and 4.75% AER/4.65% Gross p.a.) fixed for 2 years. Offer available until 5pm on 2nd September 2026 for new customers and 7th September 2026 for existing customers. Please be aware that this offer can be withdrawn at any time due to limited availability. Interest is paid monthly and on maturity. This account is for sole applicants only and cannot be opened in joint names. Minimum deposit £1. Maximum deposit £99,999. You can make additional payments or withdrawals from your account until 3:30pm on 21st September 2026. After this date partial withdrawals are not allowed. If you want to make a withdrawal after this time and before the Maturity Date, you must close your account by giving 35 days’ written notice to your branch. Early Closure Charge may apply. The Early Closure Charge will be the lower of the amount of interest earned on your account or 90 days’ interest. Interest will automatically be paid into your Fixed Term Savings Account. You can choose to have interest paid into another Nominated Account. This must be a Royal Bank of Scotland personal current or savings account with instant access (other than a cash ISA) held in your name at the same branch as your Fixed Term Savings Account. If interest is paid into your Nominated Account, you can access it the following day. You must be 16 or over and a UK resident. FSCS protected.
An income bond is a type of savings account that allows you to earn a regular income in the form of interest on your savings. Income bonds are popular with those who have a lump sum in savings and want to use this to generate income, such as many pensioners.
Types of income bonds
There are various types of bonds that will allow you to turn your savings into a source of regular income.
Fixed rate bonds
One of the most popular types of bonds for those looking to earn a return on their savings. Fixed rate bonds offer a guaranteed rate of interest in exchange for agreeing not to touch your money for a fixed period – usually 1, 2, 3 or 5 years.
Interest can be taken monthly, giving you a regular income and the fixed rate means that you know exactly what your income will be for the life of the bond. However, because the rate is fixed the amount you earn will not increase in line with inflation.
It’s also worth bearing in mind that if you need to withdraw your money early, you may be hit with a penalty fee. This is usually calculated based on a percentage of the interest you would have earned on the funds withdrawn.
Monthly income bonds
Monthly income bonds allow you to earn monthly interest on your savings, but unlike a fixed rate bond, you can take your money out whenever you need to. The interest rate you get on a monthly income bond will normally be variable, meaning it will go up and down due to inflation and other factors.
Monthly income bonds tend to offer lower interest rates than fixed rate bonds, but are more flexible as you can access your money when you need it and the income you earn will tend to keep pace with inflation.
