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Abbey out front with new bond

Abbey out front with new bond

Category: Savings

Updated: 03/03/2009
First Published: 02/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Abbey has withdrawn and replaced its three year fixed rate bond with a new two year offering, as well as revising its one year option.

The two year fixed rate bond matures on 1 March 2011 with a minimum investment of £30K, which pays 4.01% yearly (3.94% monthly). No additions are permitted, while early access on closure is subject to 120 days' loss of interest.

The one year option requires a minimum investment of £1, paying 2.70 yearly (2.67 monthly). No additions are permitted and early access incurs a 90 days loss of interest penalty.

The improved rates of 4.01% and 2.70% respectively are both hugely welcome in times that are typified by declining interest rates. The significant minimum investment on the two year bond will put some off but both products still achieve four out of five Moneyfacts stars.

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 Any products featured may be withdrawn by their provider or changed at any time.