Chelsea launches new fixed rate savings bonds

Chelsea Building Society has launched two new Spring Fixed Rate Bonds with effect from Wednesday 21 May 2008.

The current 1 year Spring Fixed Rate Bond (2nd Issue) and 2 year Spring Fixed Rate Bond (2nd Issue) are withdrawn at close of business on Tuesday 20 May 2008.

Annual interest is first paid on 1 May 2009 and annually thereafter. A monthly interest option is also available.

Withdrawals made before the end of the fixed rate period are allowed however will be subject to a penalty equivalent to 180 days' loss of interest on the amount withdrawn. After the fixed rate period, immediate penalty free withdrawals1 are permitted. Withdrawals will affect the AER.

At the end of the fixed rate period, the funds in these accounts will transfer to Branch Instant, paying a lower rate of interest or alternatively offered a new fixed rate bond if Chelsea are able to at that time.

To find out more about Chelsea savings accounts or interest rates contact Chelsea at your local branch or visit thechelsea.co.uk.