UK financial services provider Bradford & Bingley has launched two fixed-term bonds, offering a choice of a one or two year fixed term, with the option of monthly or annual interest payments.
The two-year fixed-term bond offers a competitive 5.70% per annum gross fixed rate, while the one-year fixed-term bond offers a 5.50% per annum gross fixed rate.
Investors can place a minimum of GBP1,000 in the bond and up to a maximum of GBP250,000. Interest can be paid on the first of every month at a rate of 5.37% gross on the one-year bond and 5.56% gross on the two-year bond. Those opting for annual interest can choose to have it credited to their bond or paid out on March 13, 2009 for the two-year bond or March 14, 2008 for the one-year bond.
Steve Potter, head of savings at Bradford & Bingley, said: At a time when even the experts are having trouble predicting the rise and fall of rates, investors will have peace of mind knowing that the interest rate will be fixed the term of the bond.