New bond introduced by first direct

A new one-year fixed-rate savings bond has been launched by first direct, it has been reported.

The bond, available to consumers who invest between £2,000 and £49,999, offers a rate of 2.75 per cent AER and will mature on February 28th 2011.

Extra payments cannot be made into the bond when opened, while withdrawals will face a £100 penalty plus the loss of interest.

Matt Colebrook, chief executive at first direct, said that although interest rates have remained unchanged for some time, savers "still want the certainty of earning a consistently good rate of interest on their money".

He added: "This new fixed-rate savings bond, together with our competitive fixed-rate e-Isa products, mean first direct is offering some of the best savings rates on the market."

Earlier this week, Newcastle Building Society launched a range of fixed-rate Isa and bond products, offering up to four per cent interest to any consumer who saves at least £500 a year.

Available as a one or three-year product, savers can access the accounts without a charge providing they offer 90 days' notice.

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2010-02-09 12:53:21 © Moneyextra.com