BM first to break 6% barrier with launch of new fixed rate bond

UK savings provider Birmingham Midshires today announced the launch of a new Best Buy bond with a fixed rate of 6.05% gross/AER.

It is the first provider to smash the 6% per cent marker.

BM's new product is a staggering 0.33% above the rate of its current one-year fixed rate bond and stands an impressive 0.80% above base rate.

From 20 January 2007, savers will be able to secure a market-leading fixed rate of interest at 6.05% gross/AER for a full year with Birmingham Midshires’ One Year Fixed Rate Bond.

The bond is unique to the marketplace in offering an excellent rate of interest for a minimum balance of £1.

The One Year Fixed Rate bond further allows savers benefits in the form of flexible interest payment - customers will be given the option to be paid annual or monthly interest (monthly interest at 5.89% gross).

Jason Robinson, director of savings and investments at Birmingham Midshires, said: “We’re consistently reacting to the needs of customers in achieving excellent fixed rates of interest over a year long period. Following last week’s base rate increase, Birmingham Midshires is keen to pass on the most competitive rate possible to savers. Customers should move quickly to grab this market-leading rate.”