Anglo Irish Bank cuts bond rates

Wednesday, 07 January 2009 12:00

Anglo Irish Bank has reduced savings rates on a number of its bonds by as much as 0.5 per cent.

Although it has made no changes to its two-year fixed-rate bond, which retains its 4.20 per cent rate, the one-year, three-year, four-year and five-year products have been slashed.

As of yesterday the one-year fixed-rate bond will now pay a 4.6 per cent rate of interest, 0.4 per cent lower than previously.

The three-year fixed-rate bond has undergone a rate cut of 0.3 per cent and now offers savers interest at four per cent.

Meanwhile the four-year fixed-rate bond has been slashed by 0.4 per cent and now comes with an interest rate of four per cent and the five-year version of the bond has suffered a 0.5 per cent cut in rates. It also has a four per cent interest rate.

Anglo Irish Bank said any applications it had received for the one-year fixed-rate bond which were still in process would receive the old rate of five per cent until January 15th.

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