Abbey and A&L launch 4.01% fixed-rate bond

Abbey and Alliance & Leicester (A&L) have launched a new bond with a guaranteed fixed rate of interest.

The two year bond pays interest at 4.01% AER - four times the Bank of England’s base rate - on balances between £30,000 and £200,000.

Although this is significantly lower than rates that were offered in 2008, it will provide hope to savers that interest rates could be on the road to recovery.

Reza Attar-Zadeh, director of savings and investments at Santander owned Abbey and Alliance & Leicester, said: “This is a limited opportunity for customers to get the best fixed rate in the market - offering a guaranteed return for two years, four times higher than current base rate.

“The account also offers the option of monthly interest for those looking for a regular income, with the confidence that their savings are safely held with one of the world’s largest banks.”

The new fixed rate bond is available from all branches of Abbey and Alliance & Leicester, and matures on 1 March 2011.

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