Barclays extends its range of flexible savings bonds
Barclays has increased the rates on its 18 Month Flexible bond by 0.50 per cent, now paying a fixed rate of up to 3.00 per cent AER.
It has also extended its range of flexible bonds by launching a new 4 Year Flexible bond with a bonus paying up to 3.75 per cent, plus an extra 0.25 per cent p.a. payable at maturity if no withdrawals are made over the term.
The 18 Month Flexible Bond - Issue 4 will pay 3.00 per cent AER on balances over £50,000 - the maximum investment is £1,000,000. The bond will pay 2.50 per cent AER on balances below £50,000 - the minimum investment is just £1. The bond allows three withdrawals of up to 10 per cent (maximum 30 per cent) of the initial deposit without notice or charges, which means that someone investing £10,000 could withdraw a total of £3,000 at any time over the 18 months without incurring any charges. The three withdrawals offer customers the peace of mind that they can access their money instantly in an emergency or ear-mark it for specific plans in the future.
Andy Gray, Head of Savings at Barclays said: "Autumn marks a peak time for bond maturities, with thousands of people looking for a new home for their savings. Since June bond rates have fallen on average by 0.25 per cent but in recent weeks we have seen the high street's fixed rate bond market become more competitive, with rates picking up again as providers try to target savers during this busy period. We are increasing the rates on our 18 month flexible bond, to help customers maximise the return on their savings but also maintaining the flexibility to access their money.
"The response to our flexible bonds since we launched in June 2011 has been fantastic - customers have bought four times more than we originally expected and our 2 Year Flexible bond - Issue 1 was the fastest selling bond we have ever had. We are really tapping into what customers are looking for - a good rate to support savers in this low interest rate environment with the ability to access a proportion of their money if needed."
Alongside the 18 Month Flexible bond, Barclays is also launching a new competitive 4 Year Flexible bond with bonus - Issue 5. This will pay 3.75 per cent AER on balances over £50,000 - the maximum investment is £1,000,000. The bond will pay 3.25 per cent AER on balances below £50,000 - the minimum investment is just £1. Three withdrawals of up to 10 per cent are permitted and if no withdrawals are made, an additional fixed bonus of 0.25 per cent gross p.a. is payable, adding up to 1 per cent of the initial amount invested over the term. The 18 Month and 4 Year Flexible bonds give customers a choice in order to satisfy their short and longer term savings needs.
New and existing customers can open their flexible bond instantly through a branch. In addition Barclays current account customers can apply online at barclays.co.uk/flexible.
Barclays continues to offer a one year fixed rate bond paying 2.00 per cent p.a./AER with a minimum investment of just £500.
The launch of the 18 Month Flexible Bond will be supported by a TV advertising campaign which will commence on 1st October and run for two weeks.