The newly merged Co-op Bank and Britannia have launched a table topping three year savings bond paying an interest rate of 5 per cent before tax . Paying ten times the current base rate, the new product is reflective of the fact that interest rates on three year bonds are at their highest level since March.
Savers are being urged to act fast, as the uptake on many savings accounts and bonds is exceeding banks expectations. National Savings and Investments (NS&I) last week withdrew its leading deals on one- and two-year bonds after they proved more popular than expected. It was the shortest time an NS&I bond has ever been on sale. Similarly, Coventry's Poppy Bond was withdrawn last week after just 23 days on sale.
Banks appear eager to attract capital at the moment as they look to build up a healthy reserve to protect against a repeat of the credit crunch.
Savers are given a thirty day window at the end of each year of the bond when they may withdraw their money. However, if they do, a pre-tax interest rate of 3 per cent will be payable rather than the 5 per cent advertised.
Merged Bank Launches Table Topping Bond
Financial Services > e-banking > Banking news
Merged Bank Launches Table Topping Bond
Wed, 25 Nov 2009
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