Abbey and A&L Business Banking launch new fixed rate bonds

Abbey and Alliance & Leicester Business Banking have launched new fixed rate bonds, aimed at businesses with a turnover of up to £1 million. The one year fixed rate bonds, which are available from 3 September, offer a market leading interest rate of 3.00 per cent gross pa/AER and mature on 1 October 2010.

The new products enable businesses to save between £50,000 and £2 million. To apply business owners can call Abbey Business Banking on 0845 606 0593 or contact Alliance & Leicester Business Banking on 0800 587 0800. The business bonds are available for a limited period only and may be withdrawn without notice and therefore business owners who are looking to deposit surplus funds for a set period are encouraged to apply as soon as possible.

Sue Hayes, Head of Business Banking comments: "In the current economic downturn it is important that SMEs ensure that any surplus funds work as hard as they do and the new one year fixed rate bonds are a great way for business owners to ensure they are getting a good return. Our previous fixed rate bonds have proved very popular and this is a limited opportunity to invest with a guaranteed fixed rate, significantly above the current Bank of England base rate. Businesses can also be safe in the knowledge that their savings are securely held with one of the world's largest banks."

Lee Tillcock, Editor of leading independent finance guide Business Moneyfacts says: "The new one year fixed rate bonds from Abbey and Alliance & Leicester Business Banking provide a good level of interest and significantly more than similar products available in the market. This type of product is ideal for business owners who are able to save for a fixed period of time."

Features of the new fixed rate business bonds include:

Fixed rate of interest - 3.00 per cent gross pa/AER
Fixed term - 1 year
Minimum balance £50,000, maximum of £2,000,000

These products are strictly limited offers and are not available to deposits already held with any UK Santander brand.