Sainsbury's savings bonds offer 'good returns'
07/02/2006
Sainsbury's Bank bonds are a great way to save and offer attractive returns, according to research.
Financial website Moneyfacts found that the average return on a one-year fixed-rate savings bond for an initial investment of £3,000 is 4.5 per cent. However, Sainsbury's bond offers a return of 4.9 per cent – one of only four bonds which do so.
Pauline White, savings manager at Sainsbury's Bank, said: "Fixed rate savings bonds offer the security of an attractive return, but as with any savings product, it's important to shop around to make sure that you are receiving a competitive return."
Sainsbury's Bank currently offers a return of 4.9 per cent on balances of £3,000 or more. Interest on the one-year bond is currently paid on maturity on 16th January 2007.
On analysis of Moneyfacts' data, Sainsbury's found there are seven one-year fixed-rate bonds on the market which pay under four per cent interest – almost one per cent less than Sainsbury's.
Customers can apply for the bond online or by calling Sainsbury's.
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