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SAGA sets short term fixed rate pulses racing

SAGA sets short term fixed rate pulses racing

Category: Savings

Updated: 15/05/2017
First Published: 14/03/2011

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 It is now over 6 months old so the content may be out of date.

SAGA has unveiled some new short term fixed rate bonds sure to set pulses racing.

Its One Year Fixed Rate Savings account pays 3.20% on maturity (3.15% monthly), high enough to rank amongst some of the best one year bonds available.

Meanwhile, its Two Year Fixed Rate Savings account, of which an internet version is also available, pays 3.80% yearly (3.74% monthly), leaving them in the upper echelons of their respective fields.

Both bonds require a minimum investment of £1 and accept additional investments while the issue remains open.

However, one important difference is that while the one year account forbids any withdrawals during the term, money can be taken from the two year versions, albeit at a price.

Early access to funds on the two year accounts is permitted subject to 180 days' loss of interest in year one, and 90 days' loss of interest in year two.

As is SAGA's way, the accounts are only available to those aged 50 and over.

But four out of five Moneyfacts stars are well deserved.

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