Banks are currently trying to lure savers with the incentive of fixed rates, knowing that they will currently be suffering the effects of a dramatic fall in interest rates in recent months.

Having seen their savings and pension pots dwindle, savers could be inclined to choose fixed rate bonds to protect from any further interest rate cuts implemented by the banks.

The Alliance & Leicester Business Bond offers business customers the opportunity to get guaranteed returns on their savings, with a rate fixed at 2.81 per cent for nine months.

While the majority of economists now predict that the Bank of England will not cut the base rate again – after it voted to keep it at 0.5 per cent for the third consecutive month yesterday – it is not expected to raise them anytime soon, which is likely to translate to the banks taking a similar stance.

Maturing in March 2010, the A&L; business bond accepts deposits between £50,000 and £2million, but does not allow withdrawals or any further deposits during the term.

Commenting on the new bond, Ceri Henfrey, head of business banking at Alliance & Leicester, said: “Alliance & Leicester business banking is committed to helping SMEs maximise their business potential and this new Business Bond is a great way for business owners to make the most of their surplus cash.

“This is a limited opportunity to invest anything from £50,000 to £2,000,000, and savers can get a guaranteed fixed rate, which is significantly above the current Bank of England base rate,” she added.

Apply online for the Alliance & Leicester Business Bond

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