Royal Bank launches limited edition Christmas Bond

The Royal Bank of Scotland has launched a special, limited edition Christmas Savings Bond to help savers get a head start for 2007.

The six-month bond, which is now available for sale, features a top rate of 5.30% AER. The bond can be opened by depositing a lump sum of between £2,500 and £50,000. The RBS Christmas Savings Bond starts on 9 January 2007 and matures 9 July 2007.

The bond offers guaranteed rates for the full term. The interest rates are tiered and customers have the choice of receiving their interest monthly or in April and at the end of the six-month term. Depending on their choice, the following rates apply:

Rates for annual interest rate option
Deposit £25,000 - £50.000
Gross/ AER 5.30%
Net 4.24%

Deposit £2,500 - £24,999
Gross/ AER 5.00%
Net 4.00%


Rates for monthly interest rate option
Deposit £25,000 - £50,000
Gross/ AER 5.00%
Net 4.00%

Deposit £2,500 - £24,999
Gross/ AER 4.70%
Net 3.76%

Colin Haddley, Product Director for Savings and Bancassurance, said: ‘This is a great opportunity for savers to plan ahead and look forward to the summer when they can count on having some extra cash to invest or spend.’