Saga Personal Finance launches two-year fixed bond

Consumers seeking the best savings rates in the UK have another product to choose from this week.

Saga Personal Finance has launched a new two-year fixed-rate bond, which pays a rate of 3.85 per cent AER on balances over £30,000 and 2.5 per cent on those below this threshold.

Paul Green, head of communications at the firm, explained that account holders are able to access a monthly income option, since Saga realised many customers were drawn to this particular feature.

He also took the opportunity to discuss ISA rates for the over 50s – a group which has benefited from an increased annual tax-free savings allowance from this week.

Mr Green stated: "Saga agrees that it is unacceptable for ISA providers to offer lower rates on products for over 50s than they offer on their standard ISA accounts.

"Many over-50s rely on the income from their savings in order to help fund their retirement."

Earlier in the week, Abbey and Alliance & Leicester launched a new range of guaranteed investment products, which may interest those seeking to maximise their income.

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2009-10-08 13:41:44 © Moneyextra.com