Alliance and Leicester fixed rate bonds have enjoyed some interest rate changes, with the one year fixed rate product going up from 6.5 percent to 6.65 percent AER.
All the fixed rate bonds provided by Alliance and Leicester will payout on a monthly basis should that be preferable to the customer, with the balance invested needing to be between GBP2,500 and GBP2 million to be eligible for monthly payments. The minimum amount needed to invest in one of these bonds is GBP1,000.
The benefit of fixed rate bonds is the security of the capital invested as well as there being a set, guaranteed, return said an Alliance and Leicester spokesman. This means customers know exactly what they will receive back from their investment, enabling them to plan more effectively.
Interest rates on nearly all the Nationwide Building Society International Sterling savings accounts are being reduced by between 0.25 and 0.3 percent.
The international arm of the Nationwide Building Society is not cutting interest rates on their Euro or Dollar savings accounts though, these will retain their existing rates. In addition they are actually increasing the rate of interest paid on their Lifetime Guarantee Account, going up by 0.2 percent. This gives it a first year rate of 6.4 percent.
Currency based accounts can be subject to fluctuations as the exchange rates vary following economic changes, hence the cuts announced here by the Nationwide Building Society.
The Alliance and Leicester has extended the offer period on its 9 percent gross interest paying fixed rate savings account to give more customers the opportunity to benefit.
The one year deal is open to Alliance and Leicester customers who invest in the Balanced Savings and Investment Plan, which brings together the savings account already mentioned and an investment bond. The bond is designed to offer good returns over the medium term, typically around 5 years, while the savings account gives customers a great benefit in the short term.
Investment bonds have grown in popularity recently as investors look for safe homes for their money where growth can still be achieved and this Alliance and Leicester offer which combines the high interest savings account delivers all that and more.
