Abbey announces new fixed savings rates

Tuesday, 02 December 2008 12:00

Abbey International has unveiled new interest rates on its limited offer fixed-rate savings accounts.

The savings plans, which are for minimum investments of £30,000, allow savers to lock their cash in for three months, six months or one year.

For customers putting their money into the 12-month account, an interest rate of five per cent gross/AER is offered.

Those who would like to save for six months will see their savings benefit from a rate of 4.45 per cent gross or 4.50 per cent AER. And three-month investments will have a rate of 4.25 per cent gross or 4.32 per cent AER applied.

Jane Matthews, head of marketing and business development at Abbey International, said: "In the current climate of uncertain interest rates, fixed-rate savings will appeal to savers looking for guaranteed fixed interest rates."

Interest is paid on maturity. The amount is based on the Bank of England's base rate, plus a bonus. The bonus is currently two per cent for the 12-month account and 1.45 per cent and 1.25 per cent for six and three months respectively.

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