BM Savings launches new Inflation Rate Bonds and ISAs
Following the extremely popular launch of the three and five year Inflation Rate Bonds earlier this year, BM Savings today launched two new Inflation Rate Bonds and Inflation Rate ISAs, with the option of a three year or five year term.
The Bonds and ISAs track annual inflation as measured by the Retail Prices Index (RPI) whilst also offering a fixed interest rate on any balances - of 0.50% AER/Gross/Tax Free on the five year term or 0.25% AER/Gross/Tax Free on the three year term.
Official figures released by the Office of National Statistics (ONS) shows that annual inflation for the Retail Prices Index (RPI) has reach 5.0% in June. RPI tracks the cost of a variety of household goods from travel to telephones, fuel to food and over the last five years, consumers have seen a rise in the cost of basic every day items.
John Bianco, Head of BM Savings said: "We are very pleased to announce the new additions to our Inflation Rate Bond savings range with the five and three year Inflation Rate ISAs. Our customers have told us they are concerned about the effect of climbing inflation on their savings pots. With this in mind, our new Inflation Rate ISAs offer customers the opportunity to limit the impact of inflation on their savings with a choice of term to suits their needs."