Santander extends savings bond range

Tuesday, 01 December 2009 12:00

Santander is preparing to unveil a new range of fixed-rate savings bonds.

A one-year fixed-rate bond is being launched tomorrow paying returns of three per cent, up from the 2.75 per cent paid on the previous version of the product.

Meanwhile it is also introducing a two-year fixed-rate bond with interest of four per cent gross per annum. Santander said the product had been extended to allow more people to take advantage of the rate, which is offered for balances of over £10,000.

The one-year bond is also available to customers depositing £10,000. However there is a version, paying 2.5 per cent interest, for those with between £1 and £9,999.

Raza Attar-Zadeh, director of savings and investments for Santander, said: "We're pleased to offer these increased rates and believe this [one-year] bond provides excellent value for customers looking for a fixed income.

"This new bond complements our competitive range of fixed-rate savings which continues to include our two-year fixed-rate bond paying four per cent gross/AER."

The bonds are available through Santander's UK savings providers - Abbey, Alliance & Leicester and Bradford & Bingley.

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