Prinicipality launches new fixed rate savings bonds

Commenting on Principality Building Society's new two and three-year fixed-rate bonds for those aged 50 and over, Kevin Mountford, head of savings at price comparison site moneysupermarket.com, said: "The economic prospects may be bleak in general but things just keep getting better for savers, as banks fall over themselves to attract retail deposits to help them shore up their books. We've seen a rush of bonds paying over seven per cent, and now we see two paying 7.15 per cent - albeit with a minimum deposit of £10,000 and only accessible to those aged 50 and over. This segment of the market tends to be hugely profitable for the banks so it's good to see the Principality catering for them with an extra special rate. Savers may be well advised to jump in now, as it might not be around for long."