Santander launches new fixed-rate bonds

Savers looking to deposit their money in a bond with guaranteed returns may be interested in a new range of products from Santander.

The bank has launched several fixed-rate bonds this week, which pay interest of up to 3.7 per cent gross AER.

For example, over a one-year term with a deposit of £500 or more, customers can benefit from a rate of 2.5 per cent gross AER, while a rate of 3.2 per cent will be earned in the same deposit over a two-year term.

However, early closures and withdrawals are not permitted, so the money must be available to be put away for the full term.

"For those savers keen to get their new year budgets in order our latest savings bonds could be just what they are looking for," said Santander's Matt Hall.

Last month, the bank also launched a new range of fixed-rate postal Isas to benefit both new and existing customers.

Compare savings bonds to find the rates and features you need