Santander launches new range of high interest savings bonds

Sunday, 04 December 2011 08:04

Santander has launched a new range of fixed rate savings bonds that pay up to 3.55 per cent gross AER.

There are three one-year fixed rate savings bond options paying 2.50 per cent on balances above £500, three per cent on balances above £5,000 and 3.2 per cent on balances over £25,000.

In it selection of two-year fixed rate bonds the rate rises to 3.2 per cent, 3.4 and 3.5 per cent on balances in the same range.

Santander has also released details of its one-year term tracker bond that tracks the Bank of England base rate. The bond tracks base rate and pays 2.7 per cent gross AER on top taking it to 3.20 per cent for balances above £10,000 up to a maximum limit of £2 million.

Matt Hall, Head of Savings at Santander: "For those savers looking to receive a fixed income, our latest savings bonds let them know exactly what return they will receive from the outset. And for those customers looking to track any changes in the Bank of England base rate our Tracker Bond tracks 2.70 per cent over the base rate for 12 months."

Santander recently announced details of its upfront interest bond which pays interest immediately and is available if they open an account before December 20th. However, critics have pointed out that better deals are available if you can wait to receive the interest payments and that this deal is primarily being used by Santander as a way of getting new current account customers who can be more profitable for the bank in the long run.

Compare savings bonds

Comments Bubble Comments

blog comments powered by Disqus

Twitter: My Finances

Join the conversation at #news_myfinances

Newsletter sign up


In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: