Santander has increased the interest on its fixed rate bonds, now paying up to 3.60 per cent, and with a choice of one year, two year, or 15 months.
Effective from today, the bonds have been reissued with higher rates, and the 18 month bond has become a 15 month bond.
The new issue of Santander's fixed rate bond range includes a one year bond, which is now paying annual interest of 2.80 per cent and can be opened with £1.
The 15 month bond (previously the 18 month bond) offers a rate of 3.00 per cent on balances of £1 or more.
The two year bond has two tiers of interest, depending on how much is deposited; it pays 3.20 per cent on balances of £1 or more, or 3.60 per cent on balances of £10,000 or more.
Santander's fixed rate bonds are available to new and existing customers, no further deposits are allowed once the bond has been opened, and savers are not allowed to make any withdrawals during the term.
Commenting on the new bonds, Reza Attar-Zadeh, director of savings and investments at Santander, said: "We're pleased to introduce our latest range of competitive fixed rate bonds which now include our new 15 month term.
"Our latest range is available with varying terms to suit people's needs, offering savers, who are happy to lock their money away, a competitive return in the current climate."
Mr Attar-Zadeh urges savers to move now to make their deposits, because the bonds are a limited offer until stocks last, "so customers wishing to take advantage should act now to secure these rates."
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