Cahoot releases one year fixed rate bond at 3.6%

Online bank cahoot has introduced a one year fixed bond paying savers 3.6 per cent AER.

The bond is due to be on sale until May 28, but could be withdrawn sooner if over-subscribed, the bank – part of the Santander group – said.

Once open, savers have until July 1 to deposit cash from £25,000 up to £2 million, but withdrawals are not permitted during the fixed term, which runs until July 1, 2013.

On maturity, the bond converts into an instant access savings account with a variable rate. The bank will write to savers to confirm product details and rates at least 14 days before the bond matures.

Michelle Kent, head of cahoot, said: “As always, bonds are a limited offer, so customers wishing to take advantage should act now to secure these rates.”

The account must be opened online but can then be accessed via the web and by telephone.