Savers to switch £57bn to take advantage of credit crunch rates

Britons are considering switching over £57 billion worth of savings to take advantage of strong rates caused by global financial market conditions, according to research by Abbey Savings.

Market movements have produced some of the most attractive savings rates relative to base rates. However, there are indications that these rates will be around for a limited time, since LIBOR rates have dropped significantly over the past week.

To help customers who want to get the most from these rates but not to lock away their money for a long period, Abbey today launches two short term fixed rates products for savers – the Abbey Bond and the Abbey eBond – designed to reward Abbey customers.

The Abbey eBond offers an interest rate of 6.70 per cent and the Abbey Bond offers a rate of 6.60 per cent. Both products are designed for customers looking for a guaranteed return that they can lock away until the end of the year, but with the advantage that they can access their money and review the best available rates at that time. This is a great time for savings and these new products have been developed to allow customers to benefit from the current market conditions.

Abbey is backed by the Santander Group, one of the largest and best capitalised banks in the world and the largest bank by market capitalisation in the Eurozone.

Short Term Fixed Rate Bond

Annual
Fixed until Tier Gross rate p.a. Net rate p.a. AER
Abbey eBond 1/1/2008 £1,000 + 6.70% 5.36% 6.87%
Abbey Bond 1/1/2008 £50,000+ 6.60% 5.28% 6.77%

Reza Attar-Zadeh, Director of Savings and Investments at Abbey said: “This is a great time for savings and we are seeing interest from new savers at unprecedented levels. We have received exceptional demand for our eBond and Bond products. We would urge savers to take advantage of these excellent rates while they last.

“Abbey will continue to develop products which allow our customers to benefit from the current market conditions.”

Customers can apply for the Abbey Bond either by visiting abbey.com.