BM Savings launches inflation-linked bonds and ISAs

Thursday, 14 July 2011 01:00

BM Savings, part of the Lloyds Banking Group, has launched two new bonds and ISAs that are linked to the rate of inflation.

Its Inflation Rate Bonds and Inflation Rate ISAs track the retail prices index (RPI) - currently at five per cent, according to the Office for National Statistics.

The new products also offer a fixed interest rate on any balances of 0.50 per cent AER/Gross/Tax Free on the five-year term and 0.25 per cent AER/Gross/Tax Free on the three-year term.

John Bianco, head of BM Savings, said the new products have been introduced in response to customer concerns over inflation reducing the value of their savings in real terms.

"With this in mind, our new Inflation Rate ISAs offer customers the opportunity to limit the impact of inflation on their savings with a choice of term to suits their needs."

RPI tracks the prices of a variety of household goods including travel, telecoms, fuel and food.

Use the Myfinances.co.uk comparison tables to find the best deal on savings bonds and ISAs
 

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