Barclays Bank has launched a competitive fixed rate bond paying up to 3.55 per cent.

The new fixed rate savings bond has a two year term and will pay three per cent annual equivalent rate interest (AER) for deposits from £500 to £49,999.

For deposits from £50,000 up to £1million the interest is 3.55 per cent AER.

Interest can be paid monthly with no further deposits or withdrawals allowed, making it a suitable option for savers who have a lump sum to invest. The interest rates above show the rate if paid at the end of the term.

Andy Gray, head of Barclays savings said: “Fixed rate bonds have been immensely popular with customers over the last two years as they offer a guaranteed rate of interest in the low rate environment.”

Gray said the bond was aimed at customers looking for a guaranteed return and were able to lock away their savings for two years.

“From just £500 it is accessible to almost  everyone, while those customers with higher balances to save will be rewarded with even better rates of interest, paying seven times more than base rate.”

The account is open to new and existing customers.

© Fair Investment Company Ltd

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