Alliance & Leicester update fixed rate bond range

Due to the unprecedented popularity of Alliance & Leicester's recently launched 6 Month Fixed Rate Bond, the product has now been withdrawn.

However, the interest rate on its 1 Year Fixed Rate Bond has been increased to 6.65% gross pa/AER (up from 6.50% gross pa/AER). This new rate will take effect from Tuesday 6 May 2008.

Alliance & Leicester's fixed rate bonds all offer a monthly income option, with the additional benefit of a rate that is fixed from the outset, as well as no risk to the capital.

There is a choice of investment terms, with a one year option paying an interest rate of 6.65% gross pa/AER, a two year option paying 6.30% gross pa/AER and finally, a three year option paying 6.05% gross pa/AER.

Martin Leake, Savings Manager at Alliance & Leicester commented: "Fixed rate bonds provide security of capital and a guaranteed return, so you know exactly what you're getting for your hard earned savings. Our latest bonds offer a strictly limited opportunity to invest anything from £1,000 to £2,000,000 at some of the best rates of return on the market."

Other features of these bonds include:

Interest payable monthly, or Annually
Minimum balance £1,000 (£2,500 for monthly interest)
Maximum of £2,000,000

Fixed Rate Bonds are available from all Alliance & Leicester branches, for sums of between £1,000 and £2,000,000. These offers will only be available whilst funds last. The bonds will mature on 1 June 2009, 2010 and 2011 respectively.

For more information, visit alliance-leicester.co.uk.