Barnsley launches 5.4% e-bond

Barnsley Building Society has launched a range of new Online Bonds paying interest at a fixed rate of up to 5.4%.

The three, four, and five year bonds pay a gross/AER rate of 5%, 5.15%, and 5.4% respectively.

Minimum balance to open the bonds is £100, and maximum is £500,000.

Sarah Lawrence, Barnsley’s senior product manager, encouraged savers to “act quickly” because the bonds could be withdrawn at any time without notice.

“Some consumers are suggesting that they are resisting the current tempting fixed rate offers, believing interest rates will increase,” Lawrence said.

“Whilst it’s likely that the Bank of England base rate will rise above it’s current 0.5% over the coming years, it is by no means certain that savings rates will increase in tandem.”

Recent research by Barnsley found rates on fixed-rate bonds have increased by more than 50% since March, from an average of 2.86% to 4.86%.

The new bonds can be opened online at barnsley-bs.co.uk.

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