The Britannia Building Society has added the new Inflation Beater Two-Year Bond to its savings range.

The society said that the product guarantees an interest rate higher than the rate of inflation.

The interest is adjusted each month to be the rate of inflation – currently 5% according to the retail price index (RPI) – plus an extra 1.75% gross, the society added. The bond will mature on its second anniversary when the investments will transfer to another account linked to RPI, but which will allow additional investments and withdrawals.

With a minimum investment amount of GBP1,000 and maximum of GBP1 million, withdrawals and additional investments are not allowed on the account during the two-year term.

Tim Franklin, managing director of member business at the Britannia Building Society, said: This latest bond gives savers another option to guarantee their savings are beating the rate of inflation for the next two years.