First Direct announces 2.75% one-year bond

Online bank First Direct has launched a new one-year fixed-rate bond paying interest at 2.75%.

The bond is only available to First Direct customers, and can be opened with a deposit of between £2,000 and £49,999.

No deposits or withdrawals can be made once the bond is opened. Customers who need to withdraw money from the bond will have to close the account and pay a £100 penalty.

First Direct said the bond offers savers peace of mind that their savings are earning interest in today’s low-rate environment.

“Although interest rates have remained unchanged for some time now, savers still want the certainty of earning a consistently good rate of interest on their money,” said Matt Colebrook, First Direct chief executive.

He added that the account offers one of the “best savings rates” currently available on one-year bonds.

Last month First Direct revealed that it had been awarded the accolade of best loved savings brand by readers of lovemoney.com.

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