BM Savings launches new Inflation Rate Bonds

BM Savings has launched two new Inflation Rate Bonds with the option of a three year or five year term, it follows the successful launch of the 5 year Inflation Rate Bond launched in January.

The Bonds track annual inflation as measured by the Retail Prices Index (RPI) whilst also offering a fixed interest rate on any balances - of 1.50% on the five year term or 0.75% on the three year term.

Official figures released by the Office of National Statistics (ONS) today shows that annual inflation for the Retail Price Index (RPI) has risen for the 16th month in a row to reach 5.5% in March. RPI tracks the cost of a variety of household goods from travel to telephones, fuel to food and over the last five years, consumers have seen a rise in the cost of basic every day items.

John Bianco, Head of BM Savings said: 'The first issue of the BM Savings Inflation Rate Bond proved extremely popular. We are very pleased to announce a new five year bond and in addition, reveal a new three year Inflation Rate Bond.

Today's announcement that inflation has hit a sixteen month high will prove a concern for many savers. Our new Inflation Rate Bonds offer customers the opportunity to limit the impact of inflation on their savings with a choice of term to suits their needs.'