Santander and Alliance & Leicester have launched a new range of Fixed Rate Savings Bonds paying up to 3.9% gross/AER.
The new Fixed Rate Savings Bonds are available for 1 year, 18 month or 2 year terms. The minimum investment is £1 and the maximum is £2 million.
A fixed rate savings account means you can leave your money to grow for the defined period, knowing that your interest rate is fixed. You can choose to have your interest paid monthly or annually.
With the new Santander bonds, the fixed rates increase with time and with the amount saved, for example
- 1 year fixed rate bond with £10,000+, the Annual Gross Rate (AER) is 2.75%
- 18 month fixed rate bond with £10,000+, the Annual Gross Rate (AER) is 3.00%
- 2 year fixed rate bond with £10,000+, the Annual Gross Rate (AER) is 3.50%
Reza Attar-Zadeh, Director of Savings and Investments at Santander: “Our current range of fixed rates are only available while stocks last so we encourage any customers wishing to take advantage to act now to secure what are highly competitive rates in the current low base rate environment.
Available to both new and existing customers, these bonds could be ideal for those savers looking for a guaranteed fixed income, knowing exactly what return they will receive. With rates of up to 3.90 per cent available, this latest range offers competitive returns.”