Barclays 4 year fixed rate savings bond paying up to 4.25%

At a time when savers are looking to improve their returns amid a low interest rate environment, Barclays is launching a new 4 year fixed rate bond paying up to 4.25 per cent.

The new 4 year bond will pay interest on a tiered basis, paying 4.25 per cent gross p.a/AER on balances over £50,000 - the maximum investment is £1,000,000. This will make it one of the most competitive rates on the high street. The bond will pay 3.75 per cent gross p.a/AER on balances below £50,000 - the minimum investment is just £500.

Andy Gray, Head of Savings at Barclays said: "Fixed rate bonds have been immensely popular with customers over the last few years as they offer a guaranteed rate of interest in the low rate environment. With economists forecasting base rate to remain at 0.50% for yet another month tomorrow, launching this new 4 year bond will give consumers a really competitive rate on the high street.

"The 4 year bond is aimed at those customers looking for a guaranteed return for their longer term savings needs. 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 more than eight times over 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 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. Customers can combine this with the 4 year bond to spread their savings and ensure they can meet both their shorter and longer term savings needs.