The Cheshire launches new tiered Fixed Rate Bonds

Cheshire Building Society has launched three Fixed Rate Bonds, offering competitive rates for savvy savers.

Customers can secure a guaranteed return over one, two or three years with deposits from £1,000 up to £2,000,000 and a maximum 7.00% Gross/AER.

The 12 month bond offers a rate of 6.75% Gross/AER for investments of £25,000 and over (monthly 6.55% Gross, 6.75% AER). It also offers a rate of 6.50% Gross/AER for investments from £1,000 to £24,999 (monthly 6.31% Gross, 6.50% AER). The minimum investment is £1,000 and the maximum amount is £2,000,000. This bond is ideal for investors looking for the reward of a fixed rate, short term investment.

The two year bond is split into three tiers offering 7.00% Gross/AER for investments of £25,000 and over (monthly 6.78% Gross, 7.00% AER), 6.75% Gross/AER for investments between £5,000 and £24,999 (monthly 6.55% Gross, 6.75% AER) and a rate of 6.70% Gross/AER for investments between £1,000 and £4,999 (monthly 6.50% Gross, 6.70% AER). The minimum investment is £1,000 and the maximum amount is £2,000,000. This is ideal for investors looking for a medium term investment.

The three year bond has two tiers offering 6.75 per cent Gross/AER for investments of £25,000 and over (monthly 6.55% Gross, 6.75% AER) and 6.50% Gross/AER for investments between £1,000 and £24,999 (monthly 6.31% Gross, 6.50% AER). The minimum investment is £1,000 and the maximum amount is £2,000,000. This is ideal for investors looking for a longer term investment.

Savers can open more than one fixed rate bond at a time, although no additions or withdrawals can be made to the original investment.

David Gibson, Senior Marketing Manager for Cheshire Building Society, said:
"In this current uncertain economic climate, people are wary of investing in the stock market and are returning to tried and tested means of saving money. These three new bonds are ideal for savers looking to lock in for a guaranteed return on their money while fixed rates are high with a choice of terms and great rates."

Rates are correct as at 14th July 2008, are subject to availability and may be withdrawn, or subject to change without notice.

For further information call into any Cheshire Building Society branch, visit the Society's website at thecheshire.co.uk.

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.