Principality launches two year fixed-rate e-bond for over 50s

Principality Building Society will launch ( Thursday 14 May) a new two-year e-bond for the over 50s offering a fixed-rate of 4.00% AER, making it a market-leading ‘best buy'.

With older savers being most affected by plummeting interest rates, Principality says the new bond offers them a guaranteed return on their cash.

If the Government's new equality bill is made law, special accounts for the over 50s could become banned. Principality's new bond could be one of the last opportunities for so-called ‘silver savers' to maximise their savings potential.

Principality's new bond is available for deposits from a minimum of £5,000 up to a maximum of £100,000. Interest is calculated on a daily basis and can be paid annually or monthly.

James Wright, Marketing Director of Principality Building Society, says: "Many older people rely on their savings for a significant portion of their income, so the record low interest rates have hit the over 50s hardest. Principality's new e-bond will give older savers confidence again with an excellent interest rate and a guaranteed return, plus the flexibility to have their interest paid on a monthly basis if they choose."

The two-year fixed-rate over 50s e-bond is available exclusively online at principality.co.uk/savings. The opening balance must be at least £5,000, with a maximum deposit of £100,000, and no additional deposits are allowed. No withdrawals are permitted prior to maturity.