Savings bond helps spread the risk

Published:
29 September 2008
Topic:
News,Money,Savings

A nine-month bond for savers worried about investing more than £35,000 with one single institution has been launched by Principality, Wales's largest building society.

It has a variable rate of 6.04% AER, guaranteed to be at least 1.00% above the Bank of England base rate, and allows unlimited withdrawals on balances over £35,000.

Marketing director James Wright said: "In the current climate, many savers are concerned about the safety of their deposits with some institutions and are spreading their money more widely.

"This bond offers the security of knowing that savings are working hard in a cash-based account while offering a safety net that allows easy access.

"We have listened to our members' feedback and understand that consumers need a safe haven for their money with easy access to their capital should they need it.

"Savers should be wise to the penalties and restrictions placed on many accounts, and need to be sure that they look for an account that suits their circumstances."

Savers are protected by the Financial Services Compensation Fund, which offers protection on the first £35,000 of any deposit investment. This figure increases to £70,000 for joint account holders.

Copyright © PA Business 2008

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