Savers looking for a guaranteed return over a fixed term and a low minimum investment should pop down to the Post Office where they have introduced a bond that offers just that.
The Post Office bond pays interest over a 12 month period at a rate of 7.05 percent and with a minimum investment of just GBP500 is accessible to pretty much everyone. As long as customers can leave the money intact for the year then they can earn a great rate of interest guaranteed. Such guaranteed investments are becoming more popular than ever now that the economy is in such a difficult position. Investors are looking for security rather than extravagant claims.
For anyone interested in what is an excellent savings and investment opportunity the bond can be invested in either direct at the Post Office Insurance counter, by phone or online and that GBP500 minimum investment amount is certain to make it very popular.
The Abbey National has found that over sixty percent of UK holidaymakers have used savings to finance a holiday this year, while others are using the money to pay for a holiday before it even gets to the savings account.
Over a quarter of people surveyed by the Abbey National felt that the best thing to do with the spare money they had was to use it to finance a holiday rather than put it into a savings account or other savings vehicle.
A spokesman from the Abbey National suggested taking a little bit of the money that was being allocated to holidays and use it to build up some savings. This way the person gets their holiday but also begins to build a savings fund that may well prove essential in the future.
The Alliance and Leicester has just announced a new savings account that pays interest at 9 percent gross per annum. It is a one year fixed rate account open to customers who invest in their Balanced Savings and Investment Plan.
The Balanced Savings and Investment Plan is made up of a portfolio bond and a savings account. The minimum deposit for the bond is GBP5,000 and at least GBP1,000 for the savings account. Before leaping in investors are advised by the Alliance and Leicester that the recommended term for the bond should be at least 5 years, meaning any money placed here should be left alone for a period of time.
An Alliance and Leicester spokesman said the offer combined a mix of short and medium term savings with the potential for excellent returns, much better than a regular savings account.