Santander has launched a range of new Fixed Rate Bonds.
The Spanish banking group, which owns Alliance & Leicester, has announced six new fixed rate bonds with investment terms ranging from one to two years. All of the new bonds come with two options, one for a minimum investment of £1 and another for investments of £10,000 or more.
The competitive fixed rates on offer include 3.50 per cent on a two year bond with a minimum of £10,000 investment, or 2.96 per cent for a smaller investment minimum. The basic one year bond with a £1 minimum investment offers an annual rate of 2.60 per cent and 2.75 per cent for those investing £10,000 or more.
Also available are two 18 month fixed rate bonds with an annual rate of 3.10 per cent on investments of £10,000 or more and a rate of 2.75 per cent for savers investing £1 plus.
In a low rate market fixed rate bonds can offer savers attractive interest rates if they are prepared to lock their money away for a fixed period. A lot of fixed rate bonds on the market come with a fixed term of three or five years. But Santander’s new issue bonds are relatively short term investments of between one and two years.
This means savers can make the most of their money now and still take advantage of any interest rate rises over the next couple of years.
And because their accounts offer options to invest as little as £1 they are suitable for every type of saver.
Reza Attar-Zadeh, director of savings and investments at Santander said: “Fixed rate bonds are popular for those savers looking to lock in returns, knowing exactly what income they will receive from the outset.
“Our latest range continues to offer solid returns with our one year bond rate even better than before. These bonds are a limited offer whilst stocks last, so customers wishing to take advantage should act now to secure them ."
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