Santander has launched a range of index linked bonds, aimed at sheltering savers’ cash from the eroding effects of inflation.
The Inflation Linked Savings Bond Issue 13 has a six year term with returns linked to 105 per cent of the growth in the Retail Prices Index (RPI).
This means that savers will get their money back, plus at least a minimum return of 17 per cent gross (2.65 per cent AER) at the end of the term, the bank said.
Another new bond, the Stockmarket Linked Savings Bond Issue 21, offers a choice of terms – six years, or three years and nine months.
Returns are linked to 50 per cent of the growth in the FTSE 100 Index and the minimum a customer will receive is 22 per cent gross (3.37 per cent AER) on the six year option, or six per cent gross (1.57 per cent AER) on the three year and nine month option, Santander said.
The bank’s head of investments, Alexia Kilby, said: “Our latest range of index linked savings bonds gives customers the potential to earn high rewards on their savings.
“All our plans offer the certainty of earning at least a minimum interest return, even if their chosen index doesn’t rise over the fixed term.”
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