Barclays extends flexible savings bonds range

Thursday, 29 September 2011 12:43

Barclays has extended its range of flexible bonds by launching a new four-year product with a bonus of up to 3.75 per cent, plus an extra 0.25 per cent per annum payable at maturity if no withdrawals are made over the term.

Meanwhile, the interest paid on its 18-month flexible bond has been upped by 0.50 per cent, meaning it now pays a fixed rate of up to 3.00 per cent AER.

That rate is available on balances between £50,000 and £1,000,000, while savings below that level will receive 2.50 per cent AER.

Three withdrawals of up to ten per cent of the initial deposit are allowed without notice or charges, which means that someone investing £10,000 could withdraw a total of £3,000 at any time over the 18 months cost-free.

Andy Gray, Head of Savings at Barclays said: "Autumn marks a peak time for bond maturities, with thousands of people looking for a new home for their savings.

"Since June bond rates have fallen on average by 0.25 per cent but in recent weeks we have seen the high street's fixed rate bond market become more competitive, with rates picking up again as providers try to target savers during this busy period," he continued.

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