SAGA withdraws its one-year fixed-rate bond

Paul Green Head of Saga Communications said: “Since the recent turmoil in the savings market, we have been astounded by the number of older people looking to trusted brands like Saga in which to place their hard earned savings. At one point we dealt with as many applications in one hour than we would normally expect to handle in one week.

“Since the bond's launch we have received nearly 50 times more applications than we had originally planned. This avalanche of new investment means that we have now exhausted capacity for this rate of nearly 7%. This means that from tomorrow we will no longer accept new applications - although those people who requested an application form before this time will have until 26th October to return the application to benefit from the rate of 6.92%.

“A new one year bond will be available from 4th October and will be based on the average of the top five paying bonds on 27th September.

“Customers looking for high interest and access to their savings can still benefit from the Saga Online Savings Account which pays 6.2% AER.”