N&P Combination Bond (Issue 3)

What is a combination bond?

A Combination Bond is an investment opportunity that combines the fixed income from a savings bond with the potential growth in income from an investment bond.  So you get the peace of mind provided by a N&P One Year Fixed Rate Bond combined with the growth opportunity of an Investment Bond from one of two leading financial investment providers - AXA and Prudential.

How does it work?

Up to 40% of the investment goes into a one-year Bond with a fixed interest rate, and at least 60% goes into a Prudential Flexible Investment Plan or AXA Investment Bond.

How much can I invest?

You can invest between £10,000 and £400,000 in a Combination Bond 3.  A minimum of £1,000 and maximum of £160,000 can be invested in the one year Fixed Rate Bond.

Although the Investment Bonds can be topped-up, you can't add any more money to the One Year Fixed Rate Bond.

Combination Bond 3 Criteria
Investment split Maximum 40% of total in N&P Combination Bond 3
Term One Year
Minimum initial investment £1,000
Additional investments permitted? No
Maximum investment £160,000
Withdrawals No early access or closure permitted during trem of the Bond

Interest will be paid gross to non-taxpayers subject to eligibility and the required registration. Otherwise, interest will be paid after the deduction of income tax at the appropriate rate. 

The Investment Share Account rate (excluding bonus) will be paid when the balance is below £1,000. After 1 year this reverts to the easy access Holding Account .

Current Rates
Account balance Gross Net AER
Annual - £1,000 or more 3.85% 3.08% 3.85%
Monthly - £1,000 or more 3.78% 3.01% 3.85%

Current rates effective from 13/07/2010

* Interest will be paid gross (that is before the deduction of income tax) to non-taxpayers subject to eligibility and the required registration. Otherwise interest will be paid after deduction of income tax at the appropriate rate. Please note that gross interest can only be paid to customers aged 16 or over if they are the named account holder.

** Net rates (that is after the deduction of income tax) shown are for illustrative purposes only. The interest you earn on this account will currently be taxed at the rate of 20%.Higher rate tax payers could have a furthermore liability.

*** AER means Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added each year.

How can I open a 6 Month Fixed Rate Bond?

It's easy.

You can do it by calling into any branch or you can download the application form and send it in with a cheque to:

Norwich and Peterborough Building Society
Postal Investments Unit
FREEPOST PE 104
Peterborough
PE2 6BR

Do I become a member of N&P when I open a 6 Month Fixed Rate Bond?

Yes you do.

This is a share account, which makes you a member of N&P. This means you can join N&P's general meetings and you have a vote on what's decided in them.

What will happen to my money when the term of the bond is finished?

Towards the end of the 6 months, we will contact you to discuss the best options available to you when your Bond matures.

The N&P variable rate, easy access Holding Account will apply on maturity

What are the rules on withdrawals?

You are not permitted closure or early access during the term of the Bond.

Can I open a Joint Account?

Yes you can.

The 6 Month Fixed Rate Bond is available in single or joint names.

When will my account start earning interest?

Cheques paid into an account paying a variable rate of interest will earn interest from the second working day after the day we receive them. Cheques paid into an account paying a fixed rate of interest will earn interest from the day we receive them.

Money paid into your account in cash or by Bankers’ Automated Credit will earn interest from the day we receive it. Interest is then paid for each full day your money is invested, and will be added to your account in January each year (unless otherwise stated).

Your money will earn interest up to, but excluding, the day you withdraw it.

Can I be certain that online banking is absolutely secure?

You can with N&P.

Our online system is extremely robust. It is constantly checked by both internal and external experts. Advanced encryption technology scrambles all sensitive data to provide total confidentiality.

You are given a unique customer number and a 10-character password. When you use the service for the first time you might want to change this password for one that's more easily remembered - but don't write it down or make it too obvious, so that someone else could guess it.

Can I manage my account online?

Yes you can, subject to you being 16 years old or over.

Online you are able to:

  • View up-to-the-minute balances on all your N&P savings and current accounts whenever you like.
  • Check all payments and withdrawals on your account.
  • Set up and cancel payments.
  • Transfer funds between your N&P accounts.
  • Send and receive secure email messages about your account.

To manage your account online you'll need to register for our online banking facility, just download an application form, fill it in, and send it to:

Norwich and Peterborough Building Society
Online Banking Applications
Peterborough Business Park
Lynch Wood
Peterborough
PE2 6WZ

The maximum amount you can withdraw online is £10,000 per day.

Is N&P a member of the Financial Services Compensation Scheme?

Yes we are.

N&P is a member of the Financial Services Compensation Scheme, meaning that your money is protected to a maximum of £50,000.

What if I'm unhappy with the terms of my account?

Just tell us.

We make it our aim to do the best we can for all our customers. If within 14 day's (7 day's for all Fixed Rate Bond products) you decide that this account is not for you, we will be happy to transfer your money to another N&P account.

Or if you prefer, we will return your money to you without any charge being made, or notice being required.

Key Product Information
Summary Box
Key Product Information for our Combination Bond
Account Name 1 Year Fixed Rate Bond Combination Bond 3
Interest rates (AERs)

Fixed rate for 1 year. N&P’s variable rate, easy access Holding Account will apply thereafter.

Please see Features tab for current interest rates. The rate paid will depend on the amount of money invested.

  • Minimum investment and balance of £1,000 - maximum investment of £160,000.
  • Interest paid on maturity after 1 year. A monthly interest option is available.
  • You can only make one deposit per Bond.
  • If you pay money in by cheque, it will earn interest from the day you receive it.
  • If you open a Bond and, within 30 days, you decide that it does not meet your requirements, we will be happy to transfer the balance to another N&P account (unless the specific conditions of the account state otherwise). Alternatively, we will return the balance to you without any charge or notice being required.
  • If the AXA or Prudential Investment Bonds are cancelled during their 30 day cooling off period, then the N&P One Year Fixed Rate Bond must also be cancelled.
  • Share account for UK personal customers only.
Tax Status Interest is paid net. Gross interest can be paid subject to eligibility and required registration.
Conditions for bonus payments No bonus is payable on Combination Bond 3.
Withdrawal arrangements

No early access or closure permitted during term of the Bond.

Access

The 1 year Fixed Rate Bond (Combination Bond 3) is only available when taken out in conjunction with an investment bond provided by AXA and Prudential.

This account can be opened and operated at any of our UK branches or by post. It can also be operated via the internet.

Read our General Savings and Investments Terms and Conditions.

The AXA Investment Bond
Investment split At least 60% of total in N&P Combination Bond 3
Term Recommended minimum term of 5 years
Minimum initial investment £6,000*
Additional investments permitted? Yes.  Minimum additional investment is £500
Maximum investment £399,000*
Withdrawals 12% in year 1, 10% in year 2, 8% in year 3, 6% in year 4 and 3% in year 5

*Although the AXA Investment Bond has a £5,000 minimum and no maximum limit, this is limited to £6,000 minimum and £399,000 maximum for the Combination Bond 3.

The Prudential Flexible Investment Plan
Investment split At least 60% of total in N&P Combination Bond 3
Term Recommended minimum term of 5 years
Minimum initial investment £10,000*
Additional investments permitted? Yes.  Minimum additional investment is £5,000
Maximum investment £399,000*
Early cash in charges (% of amount cashed-in) - 3 Year Option 9% in year 1, 7% in year 2 and 5% in year 3
Early cash in charges (% of amount cashed-in) - 5 Year Option 9% in year 1, 7% in year 2, 5% in year 3, 3% in year 4 and 1% in year 5

*Although the Prudential Flexible Investment Plan has a maximum limit of £1 million, this is limited to £399,000 for the Combination Bond 3.

It is important to remember that unlike a deposit account, the value of an investment bond and any income from it can go down as well as up – and that past performance is not an indication of future performance.  You may get back less than the amount invested.  An investment bond is not suitable for your short term savings (i.e. 5 years or less) or where immediate access may be required.