The Nottingham launches new fixed rate bond

The Nottingham has launched a new, fixed-rate bond catering for savers seeking to invest between £1,000 and £250,000 – and not needing access to their funds for at least six months.

It pays a guaranteed an interest rate of 6.80% AER to all UK residents aged over 18, providing they invest a minimum of £1,000.

“Throughout 2007, our savings accounts were regularly judged as “best buys” by respected, independent experts, including many well-known national newspapers and magazines,” commented Clare Roberts, savings product manager at The Nottingham.

To be deemed a “best buy”, a savings account must offer an attractive rate of interest – and a range of customer-friendly terms and conditions.

“Any UK resident can take out this new postal fixed rate bond and earn a highly competitive rate of interest,” added Clare Roberts. “In practical terms, this means someone investing £25,000 will see their savings grow by £836 during the minimum six-month period.”

After 1 September 2008, savers are able to withdraw their money penalty-free.

Savers will be able to make additional deposits, providing the issue is still open and their total balance does not exceed £250,000.

“We’re confident this account will be popular,” added Clare Roberts. “We’ve designed it specifically to appeal to people who are looking for a very attractive headline rate, and a relatively short lock-in period for their funds.”