Alliance & Leicester forced into new bonds

Alliance & Leicester International Limited saw such high demand for its limited edition one-year fixed rate bond, it is to launch another similar product this month.

The 5.2 per cent gross p.a. bond offered in late June sold out within days.

When it was released, the managing director of Alliance & Leicester International, Simon Hull warned consumers to act fast: "Funds are limited and all our previous bonds launched this year have sold out."

The Isle of Man-based offshore savings bank is now launching a similar product with a slightly increased rate.

The new bond will offer a rate of 5.4 per cent on a minimum investment of £25,000, with deposits of £100,000 and above attracting a higher 5.48 per cent.

Again, potential investors are advised to act quickly.