Santander has announced it is launching new issues of its fixed rate bonds paying competitive rates of up to 3.75 per cent AER.

From today, savers will be able to enjoy a guaranteed fixed income when they lock their money away for a year, 18 months or two years.

The Santander One Year Fixed Rate Bond pays 2.50 per cent AER with a minimum deposit of £1, while savers who invest £10,000 or more will be eligible to receive a rate of 2.75 per cent AER.

The 18 month fixed rate bond offers a rate of 2.75 per cent AER with a £1 minimum deposit and up to 3.25 per cent AER if £25,000 or more is invested.

Meanwhile, the Santander Two Year Fixed Rate Bond offers a slightly higher rate of three per cent AER with a minimum deposit of £1, while an investment £10,000 or more will see this rate jump to 3.25 per cent AER, and a deposit of £25,000 or more will bring in a return of 3.75 per cent AER.

Commenting, Reza Attar-Zadeh, director of savings and investments at Santander said: “Our new range of fixed rate bonds continue to offer good value for customers looking for a guaranteed fixed income, offering peace of mind for those savers who want to know exactly what return they will receive from the outset.  

“These bonds are only available while stocks last so customers wishing to take advantage should act now to secure what are competitive rates in the current low base rate environment.”

© Fair Investment Company Ltd