Chelsea BS launch one-year savings bond paying 3.55%

Chelsea Building Society has a new one-year savings bond available that pays a top rate of interest of 3.55 per cent gross/AER.

Chelsea BS is targeting savers who do not want to tie their money away for an extended period but still want a savings rate that beats inflation.

The consumer prices index measure of inflation fell to 2.8 per cent in May, down from its 5.3 per cent peak in September 2011.

The Chelsea BS savings bond allows an investment of between £1,000 and £2 million in the new bond, which matures on 31st August 2013. Interest can be paid either monthly or annually.

Chelsea Building Society product manager Emma Golden said: "Continuing worries over the economy are creating a real dilemma for savers.

"In a time of uncertainty people want a secure home for their money but they are unwilling to lock it away for the longer term.

"One year bonds are a popular choice at present and this latest Chelsea bond offers a best buy return of 3.55%."

The bond can be opened in Chelsea branches, by telephone or by post.

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