The Cheshire introduces new Fixed Rate Bonds

Cheshire Building Society has launched two new Fixed Rate Bonds offering competitive rates for savers looking to secure a guaranteed return over one or two years to suit their needs.

The 12 month Fixed Rate Bond offers a guaranteed rate of up to 6.30% Gross/AER, with a minimum investment of £1,000 and a maximum of £2,000,000. It is ideal for investors who are able to tie up their money for 12 months and benefit from a great return. Interest can be paid either on maturity (6.30% Gross/AER) or on a monthly basis (6.13% Gross, 6.30% AER).

The two year Fixed Rate Bond is a tiered product offering a higher rate of interest for investments over £5,000 as well as a competitive rate for smaller amounts. A minimum investment of £5,000 offers 6.30% Gross/AER (monthly 6.13% Gross, 6.30%AER) and a minimum investment of £1,000 offers 6.25% Gross/AER (monthly 6.08% Gross, 6.25% AER). The maximum investment is £2,000,000.

Customers can open one or more Fixed Rate Bonds at a time, although no additions or withdrawals can be made to the original investment.

David Gibson, Senior Marketing Manager for Cheshire Building Society, comments: “Economic uncertainty is encouraging people to be more careful with their money and has sparked a renewed interest in savings.

“Both the 12 month and 2 year Fixed Rate Bonds are perfect for savers who want the guarantee of a great rate and don’t need access to their funds for a fixed period, without the risk of investing in the stock market.”

Rates are correct as at 28th March 2008, are subject to availability and may be withdrawn, or subject to change without notice.

For further information simply call into any Cheshire Building Society branch, visit the Society’s website at thecheshire.co.uk or contact the Customer Contact Centre on 0845 055 5995 (all calls charged at local rate). Lines open 8am -8pm weekdays, 9am – 4pm Saturday. For security and training purposes, telephone calls may be monitored or recorded.

The ‘AER’ stands for Annual Equivalent Rate and illustrates what the interest rate would be if it was paid and compounded once each year.

The ‘Gross’ rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.