Cahoot launch one-year savings bond paying 3.25%

Cahoot has launched a new one-year savings bond that pays 3.25 per cent AER/gross.

The bond is available from September 10th 2012 until October 8th 2012, though it could be pulled sooner if it becomes over-subscribed.

When the savings bond matures, investors funds will be moved to a cahoot instant access savings account with a variable rate.

The bond matures on December 2nd 2013 and is open to investments from £25,000 to £2 million.

The account can only be opened online and no withdrawals are allowed. The account is open to both new and existing customers.

Matt Hall, head of cahoot, said: "Term products are currently very popular as savers look for a fixed return in an unpredictable market, so cahoot has launched another bond paying a competitive rate of 3.25%. 

“We expect significant interest as savers seek a competitive fixed income and, as this bond will be a limited offer, customers will need to buy early to avoid missing out."