In a market increasingly starved of decent savings rates, Sainsbury’s Bank has launched a range of new fixed rate bonds available for terms of 2 to 5 years.
The accounts can be opened online or by phone (0800 917 5081) with a minimum deposit of £5,000 and maximum of £50,000. Withdrawals are not permitted during the term of the bond, but you can opt for the interest to be paid monthly, a key feature for those wanting to use their savings nest egg to boost their monthly income.
The rates payable are 3.50% (2 Years), 3.75% (3 Years), 3.90% (4 Years) and 4.00% (5 years).
None of the deals top the best buy charts, but they all sit within the top five.
The fixed rate bond market is dominated by the less well-known savings institutions, with the likes of State Bank of India and The Bank Of London & Middle East (min deposit £25,000) leading the way for 3, 4 and 5 year bonds.
With savings rates being cut left right and centre at the moment, these bonds from Sainsbury’s Bank will be snapped up and as a limited offer are unlikely to be around for long.
My verdict – HIT