Last call for Abbey’s short term fixed rate bonds paying up to 6.70%

Abbey Savings today advises customers to take advantage of the unusual market conditions which has given rise to some excellent fixed rate savings deals. Abbey’s short term bonds pay up to 6.70 per cent, but are only available until 31 October 2007. These are suitable for customers looking for a guaranteed return on a lump sum they can lock away to the end of the year.

Due to recent wholesale market conditions, LIBOR has diverged from the base rate. Typically LIBOR operates at rates similar to the base rate. However, as pressures change in the wholesale market so LIBOR is dropping. At its peak, LIBOR was at 6.90 per cent on 13 September. It is currently 6.27 per cent.

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

Reza Attar-Zadeh, Head of Savings and Investments at Abbey, said “This is a great time for savings and is ideal for those customers with a lump sum available to invest with no plans for the money until the New Year. In addition to these excellent deals, we currently offer a Super Bond and Super ISA paying 8.1% fixed for one year and customers can earn up to 10% fixed for one year on our Super Monthly Saver.”

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.