Barclays launches new 2 year fixed rate bond

As we approach July - the expected peak month for bond maturities - Barclays launches a competitive two year fixed rate bond paying up to 3.70 per cent.

Since a number of fixed rate offers have been withdrawn or reduced recently in the market, this new bond sees Barclays bucking this trend and offers one of the strongest products available.

Barclays top paying bond offers 3.70 per cent gross p.a/AER on balances above £50,000 and 3.30 per cent gross p.a / AER on balances below £50,000 - the minimum investment is just £500. It will serve as a safe haven for customers, taking advantage of the ongoing low base rate environment which is not predicted to change in the medium term.

For customers who want a shorter term bond, Barclays continues to offer its one year fixed rate bond paying 2.50 per cent gross p.a. / AER for balances above £50,000 and 2.00 per cent gross p.a / AER for balances below £50,000. Again, the minimum investment is £500.

Andy Gray, Barclays Head of Mortgages and Savings said: "Our two year fixed rate is one of the best short term rates available to savers, particularly at a time when some competitors have been cutting their rates. This bond gives savers a safe haven for their money, offering them the opportunity to secure a great high fixed interest rate from just £500.

"The rate increase will have a major impact on our customers' savings - particularly those customers who are looking to earn a regular income from their savings."