Abbey rewards loyalty with launch of fixed rate reward saver

Abbey Savings is launching a new innovative savings account, Fixed Rate Reward Saver, designed for savers looking for the security of a fixed-rate product without the restriction on access.

The account offers savers a competitive rate of interest and rewards them with a bonus at the end of each one year fixed rate period. Savers can also access their money at any time without notice, fee-free.

How it works:

Guaranteed 5 per cent plus a rewarding 1.5 per cent bonus at the end of the first fixed-rate period of one year

Offering 6.5 per cent gross p.a. / AER (including 1.5 per cent bonus)

Customers can access their money without notice, fee-free (full withdrawals only)

New fixed-rate and bonus applied at the end of each year (customers to be notified prior to the rate changing)

Customers can open an account in any Abbey branch, or by telephone

Minimum opening balance GBP2,500

A "Super" version of the account is also available, offering an enhanced bonus rate of 3.50 per cent gross when the same amount or more is put into a qualifying investment.

Reza Attar-Zadeh, Director of Savings and Investments at Abbey, said: "Our research found that customers wanted not only the security of a fixed-rate account but penalty-free access to their money should they need it. With the Fixed Rate Reward Saver you get the best of both worlds. We want to get back to the basics of savings by rewarding loyalty to encourage people to save for longer, without penalising them should they need to access their hard earned cash. All this and it's available on the high street, backed by one of the world's biggest banks, Santander".