Saffron Building Society has launched a range of brand new accounts that come in a 'step' format; giving you higher interest rates the longer your money is invested.
The four-year step bond and NISA for non-members pays 1.50% in the first year, 2.20% in the second, 3.15% in the third year and 4.30% in the fourth year. The average rate across the term is a competitive 2.7%.
Meanwhile, existing customers can benefit from enhanced rates of interest. 4 Year Step Members Bond pays 1.75% in year one, 2.30% in year two, 3.20% in year three and a very attractive rate of 4.80% in year four. This gives it a competitive average rate of 3.01% over the four-year term. These rates are mirrored by the four-year member's NISA.
All accounts can be opened with a minimum deposit of £500. To qualify for the member deals, customers must have been registered for 12 months with an investment or loan of at least £100.
The non-member NISA and bond can be operated in branch only, while the member-only versions can be managed in branch or by post.
Further additions are not allowed with any of the accounts and transfers in are also not welcomed for the NISAs.
All of the bonds and NISAs allow early access to funds, although this is subject to closure of the respective account and the loss of 270 days' interest. Transfers out of the NISAs will also incur the same penalty.
The fixed step bond and NISA reserved for members offer savers an especially enticing deal, with the fourth year offering a particularly appealing interest rate. When the rate is averaged over the four-year period, the bond and NISA stand up well to competition, resting near the top of the sector. The rates available for new customers are also competitive, and the fact that funds can be accessed early, albeit with a hefty penalty, is sure to be seen as a bonus.
Four Moneyfacts Stars have been awarded.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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