Barclays ups rate on 2 year fixed rate savings bond

At a time when savers are looking to improve their returns, Barclays has launched a competitive two year fixed rate bond paying up to 3.55 per cent (an increase of 0.55 per centage points). Barclays is increasing the rate by 0.55 per centage points on the top tier of the two year bond, paying 3.55 per cent gross p.a/AER on balances over £50,000 - the maximum investment is £1,000,000. This will make it the best headline rate on the high street. Barclays will maintain the 3.00 per cent p.a/AER on balances below £50,000 - the minimum investment is just £500.

Andy Gray, Barclays Head of Savings said: "Fixed rate bonds have been immensely popular with customers over the last two years as they offer a guaranteed rate of interest in the low rate environment. With some economists forecasting base rate to remain at 0.50 per cent well into next year, increasing the rate today on the two year bond gives consumers a really competitive rate on the high street.

"The two year bond is aimed at customers looking for a guaranteed return who can lock their savings away for two years. From just £500 it is accessible to almost everyone, while those customers with higher balances to save will be rewarded with even better rates of interest, paying seven times more than base rate."

Customers taking out the fixed rate bond with Barclays can choose whether they want a regular monthly or annual income or grow their capital. New and existing customers can open their fixed rate bond instantly through a branch. In addition Barclays current account customers using online banking can apply online at barclays.co.uk/savings.

Barclays continues to offer the one year fixed rate bond, paying 2.00 per cent p.a/AER with a minimum investment of just £500 and 2.50 per cent on balances of £50,000 or more.