Saffron: New savings plans track RPI
Thursday, 23 Oct 2008 11:52
Saffron Building Society has launched a cash ISA and savings bond which return interest according to the retail price index (RPI).
The products, which run for a fixed term of two years, track the rate of the annual change of the All Items Retail Price Index plus two per cent.
It means the current rate savers can benefit from is 6.8 per cent gross or 6.58 per cent AER. This will be reviewed quarterly to ensure it's in line with inflation.
Both the cash ISA and the bond require savers to deposit a minimum investment of £500. The maximum allowance for the tax-free ISA is £3,600 and the minimum investment for the bond is £1 million.
Andy Golding, chief executive of East Anglia-based Saffron, said it was offering the chance for savers to put their money away for two years, safe in the knowledge returns would not be reduced by rising inflation.
He added: "As a local savings institution we have developed a range of competitive products and services to suit our local customers' needs.
"These two innovative savings products are some of the most competitive deals in the market place. They are available through the branch network as well as by phone and post."