A new rectangular finite element for moderately thick plates is presented. The element is based on the concept of physical shape functions, i.e. functions which contain in themselves physical and geometrical properties of the element. The analytic formulae of stiffness, geometric stiffness and mass matrices are presented for isotropic material. The element is free from locking and zero energy modes not corresponding to rigid body motions. Several examples are presented for static, initial stability and free vibration problems.