Monmouthshire BS launches two fixed rate savings bonds

Monmouthshire Building Society has announced the launch of two new corporate savings bonds.

The One Year Corporate Fixed Rate Bond Issue 1 pays three per cent AER/ gross and can be opened with a minimum investment of £2,500.

The maximum investment that can be made is £500,000, the mutual said.

Interest is calculated on a daily basis and paid on maturity, but no partial withdrawals are allowed from this bond during the one year fixed rate period.

Closure of the account is permitted at any time subject to 90 days’ loss of interest.

The Six Month Corporate Fixed Rate Bond Issue 1 offers 2.5 per cent gross/ 2.52 per cent AER.

The minimum investment for this product is also £2,500, while the upper limit is £500,000.

No partial withdrawals are allowed from the bond during the six month fixed rate period and closure will result in 60 days’ loss of interest.

Interest will be paid net after the deduction of basic rate tax, or gross without the deduction of tax for qualifying organisations who have submitted the appropriate identification, the building society said.