UK-based Saga Personal Finance is now giving customers a wider choice of high-interest savings products, with the issue of two fixed-rate bonds. It is also increasing the interest rate on its online savings account to 6.30% AER. In addition, for those that can tie their money up for slightly longer, Saga is launching the 30-month trigger guaranteed equity bond.
For customers looking to invest their money for a fixed term from October 4, 2007, the one-year fixed-rate bond has a rate of 6.77% gross and the two-year fixed-rate bond has a rate of 6.58% gross.
Saga’s 30 month trigger guaranteed equity bond is aimed at investors who are looking for the potential high return from the stock market with no chance of losing any of their capital. This bond is linked to the performance of the FTSE 100 index over a 30-month period but offers a return of 22% gross providing the average of the FTSE 100 Index has not fallen at the end of the 30-month term.
In addition to the above products, the Saga online saving account will pay an additional 0.10%, from October 4, 2007 until March 2008, giving a current rate of 6.30%, making it one of the most competitive deals on the market. All existing Saga online savings account customers will automatically benefit from this improved rate on their savings.