The one year bond offers guaranteed tiered interest rates for the full term with a top rate of 4.90 per cent gross.
It begins on 20 June 2006 and will mature 20 June 2007. The bond can be opened with an initial deposit of between £2,500 and £500,000 and customers can choose to receive their interest either monthly or annually.
RBS head of savings Angela Bartle says: “One year fixed rate bonds continue to be an attractive way to save over the short term. The Royal Bank bond gives customers the security of guaranteeing their capital without risk, with the added bonus of an attractive fixed rate of interest.”