UK finance group Newcastle Building Society has launched a new fixed-rate bond, which offers a rate of 6.15% AER fixed until September 10, 2008.

The fixed-rate bond is available as a direct investment or as an individual savings account (ISA) and requires a minimum investment of GBP500. The maximum investment can reach GBP1 million and is available as a passbook or online account.

Current customers who have held an account with the society for 12 months or more can take advantage of an additional 0.10% loyalty bonus on top of the 6.15% fixed rate.

Steve Urwin, senior executive of marketing and new media at Newcastle Building Society, said: Newcastle is delighted to be able to offer this fixed-rate bond at the highly competitive rate of 6.15%; allowing customers the option to make an investment in either a bond or ISA with a competitive and guaranteed fixed rate.

The bond is especially rewarding for our current society customers who can take advantage of the loyalty bonus of 0.10%, increasing their rate to 6.25% AER. It also allows those who have been building their ISA pot over the years to transfer existing and previous tax-free savings to one place.