BM Savings unveiling inflation beating bond

BM Savings has unveiled a range of new Inflation Rate Bonds, following the success of a previous bond launched in January.

The Inflation Rate Bonds are ideal for those seeking the best interest rates available, as the three year bond offers 0.75 per cent over inflation and the five year option gives a return tracking at 1.50 per cent.

Inflation for both the bonds is measured by the Retail Price Index RPI, which has recently seen its 16th consecutive monthly rise to reach 5.5 per cent in March.

From June 1st 2011, customers can invest a minimum of £500 and a maximum of £1 million to take advantage of the competitive interest rates.

"Today's announcement that inflation has hit a sixteen month high will prove a concern for many savers. Our new Inflation Rate Bonds offer customers the opportunity to limit the impact of inflation on their savings with a choice of term to suits their needs," said John Bianco, head of BM Saving.

An Institute for Fiscal Studies report recently revealed that household income has dropped 1.6 per cent a year since 2008, the equivalent of £360.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2011-03-22 13:10:16 © Moneyextra.com