Abbey, A&L and Nationwide cash in on fixed rate bond market

21 February 2009 / by Rebecca Sargent
As savers continue on their quest for high savings rates, A&L, Abbey and Nationwide are launching new fixed rate bonds.

The offerings from Alliance & Leicester and Abbey – both part of the Santander group – are, according to Moneyfacts' tables, market leading two year fixed rate bonds.

Both are offering a two year fixed rate bond with an interest rate of 4.01 per cent AER for balances of between £30,000 and £2,000,000. The deals are limited edition.

Commenting, Reza Attar-Zadeh, director of savings and investments at Abbey and Alliance & Leicester said: "This is a limited opportunity for customers to get the best fixed rate in the market – offering a guaranteed return for two years, four times higher than current base rate."

Meanwhile, Nationwide has also launched a series of fixed rate savings accounts in an attempt to cash in on current trends. The range includes a four year fixed rate bond offering 3.75 per cent, and new ISA bonds offering competitive rates.

Commenting, Andy McQueen, director of Nationwide savings accounts, said: "With the base rate at an historic low, savers can benefit from a fixed rate of return over a period of time that suits their needs."

However, analyst at Moneyfacts, Michelle Slade advises savers to act fast to get the best rates. "In the last week, 55 per cent of savings changes Moneyfacts has received have been on fixed rate products, so savers need to act fast to secure the best rate." she said.

Other fixed rate bonds offering high returns include the ICICI HiSave fixed rate bond offering 3.9 per cent, and the Halifax offshore regular saver offering five percent.

Compare fixed rate savings »

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