Santander launches new savings bond linked to inflation

Thursday, 08 December 2011 10:48

Santander has announced that it has launched a new Inflation-linked Savings Bond designed to give customers peace of mind that their money will earn more than the rate of inflation.

The bank's product offers a return equivalent to 105 per cent of the growth in the retail price index (RPI) over the course of the five-year bond.

However, in case inflation does not rise, savers will receive a minimum return of 18 per cent or 3.06 per cent AER.

For example, if the initial level was 238.0 and it ended at 249.9, RPI growth would be five per cent and the customer would get £11,800 back on an initial deposit of £10,000.

The bond is only available until January 5th 2012 and can be started with £500 in any branch.

Earlier this month, Santander said that anyone who opens a new Preferred Current Account via MoneySupermarket.com between now and December 23rd 2011 will receive a £30 voucher for Amazon.

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