NatWest (NWG) 424B5 Prospectus supplement for primary offering

Filed under Rule 424(b)(5), Registration Statement No. 333-162219

Preliminary Pricing Supplement No. 16 dated August 28, 2012 (to: Prospectus dated September 30, 2009 and Prospectus Supplement dated November 21, 2011)

CUSIP / ISIN Number

Aggregate Principal Amount

Price to Public

Selling Commission

Net Proceeds

Coupon Type

Coupon Rate

Coupon Frequency

Maturity Date

1st Coupon Date

1st Coupon Amount

Survivor's Option

Product Ranking

78012DAR4 / US78012DAR44

$

100.00%

1.50%

$

FIXED

3.50% per annum

MONTHLY

09/15/2017

10/15/2012

$3.69

NO

SENIOR

Redemption Information: Non-Callable/Non-Puttable

Lead Manager and Lead Agent: RBS Securities Inc.

    The Royal Bank of Scotland Group plc Offering Dates: 08/28/2012 through 09/04/2012 Trade Date: 09/04/2012 Settlement Date: 09/07/2012 Minimum Denomination/Increments: $1,000.00/$1,000.00 Initial trades settle flat and clear SDFS: DTC Book-Entry only DTC Number 2230 via RBS Securities Inc.   If the maturity date or an interest payment date for any note is not a business day (as that term is defined in the prospectus supplement), principal, premium, if any, and interest for that note is paid on the next business day, and no interest will accrue from, and after, the maturity date or interest payment date.   The notes will be treated as fixed rate debt instruments for U.S. federal income tax purposes.   Intended to be listed on the Channel Islands Stock Exchange.   The Royal Bank of Scotland Group plc Retail Corporate Notes Prospectus dated September 30, 2009 and Prospectus Supplement dated November 21, 2011