Santander to launch new range of index linked savings bonds

With Santander's new range of options available from 6 June 2012, customers can make their money work even harder:

By ensuring the real value of their money grows above the rate of inflation; or
Benefiting from the potential growth in the stockmarket.

Customers will earn at least a minimum interest return, even if their chosen index does not rise over the fixed term.

Inflation Linked Savings Bond (Issue 13)

Six-year option available.

Santander's Inflation Linked Savings Bond helps give customers the peace of mind that the real value of their savings will not be eroded by inflation.

Returns are linked to 105% of the growth in the Retail Prices Index (RPI) and customers have the protection that no matter what happens to the rate of inflation, they will still receive their money back plus at least the minimum return of 17% gross (2.65% AER) at the end of the six year term.

Stockmarket Linked Savings Bond (Issue 21)

Choice of six-year term or three years and nine months.

Santander's Stockmarket Linked Savings Bond enables customers to benefit from the potential growth in the stockmarket, whilst offering protection of at least a minimum interest return, even if the Stockmarket doesn't rise over the term.

Returns are linked to 50% of the growth in the FTSE 100 Index and the minimum a customer will receive is 22% gross (3.37% AER) on the six year option, or 6% gross (1.57% AER) on the three year and nine month option.

Alexia Kilby, Head of Investments at Santander, said: "Our latest range of Index Linked Savings Bonds gives customers the potential to earn high rewards on their savings.

What's more, all our plans offer the certainty of earning at least a minimum interest return, even if their chosen index doesn't rise over the fixed term.

Alexia Kilby continues: "Many savers are still worried that the returns they are earning on their money will not keep up with inflation. This is exactly why Santander has developed the Inflation Linked Savings Bond.

"This pays 105% of the growth in the Retail Prices Index (RPI), so whatever inflation increases by during the term, the real value of their money will grow at a higher rate."

These offers are only available for a limited time and customers who wish to apply can do so by visiting any Santander branch, by calling 0845 765 4321 to book an appointment.

Customers can also apply online, at:

santander.co.uk/inflation
santander.co.uk/stockmarket