Chelsea guarantees savers base-rate plus 0.5%

Tuesday, 18, Jul 2006 05:02

From tomorrow Chelsea Building Society is offering to guarantee savers an interest rate of Bank of England base rate plus 0.5 per cent until May 2007.

Starting with an initial rate of five per cent, Chelsea's new double guarantee savings account will offer interest of base rate plus 0.5 per cent until May 2nd 2007.

And the benefits do not end there. From May 3rd 2007 until May 2nd 2008 Chelsea guarantees savers will receive interest at least in line with Bank base rate.

After this point Chelsea guarantees that people will earn interest at least equal to the building society's instant saver account.

Savers can invest anywhere from £250 to £500,000 and can choose to have their interest paid either annually or monthly.

However, people who invest in the double guarantee savings account will have to give 80 days' written notice to withdraw money before May 2nd 2007. People wanting to withdraw cash instantly lose 80 days' gross interest on the money withdrawn. Those choosing to withdraw money between May 3rd 2007 and May 2nd 2008 have to give 40 days' written notice, or they lose 40 days' gross interest on the amount withdrawn.

After that all withdrawals are notice and penalty free.

Chelsea's double guarantee can be opened in branch or by post.