New Fixed Rate Bonds From Shawbrook Bank

Shawbrook Bank has launched four new fixed rate bonds which will all be top of the best-buy tables – perhaps it’s time to set a New Year’s resolution to get into the savings habit?

Shawbrook, a specialist savings and lending bank which launched in October 2011, has also increased the rates on its existing 95 day and 120 day notice accounts for personal savers.

Looking first at the fixed rate bonds, these are

• 2 Year Fixed Rate Bond – 4.20% GROSS/AER
• 3 Year Fixed Rate Bond – 4.45% GROSS/AER
• 4 Year Fixed Rate Bond – 4.45% GROSS/AER
• 5 Year Fixed Rate Bond – 4.80% GROSS/AER

Each of the savings accounts has a minimum balance of £5k and a maximum of £1m.

The changes being made to the existing savings products are:

• 1 Year Fixed Rate Bond – increase from 3.10% to 3.60% GROSS/AER, min £2k and max £500k (currently joint top rate)
• 120 Day Notice Account – increase from 3.05% up to 3.45% GROSS/AER, min £1k max £500k
• 95 Day Notice Account – increase from 2.95% to 3.35% GROSS/AER, min £1k max £500k

Owen Woodley, CEO of Shawbrook Bank said, “Our new fixed rate savings accounts mark the end of a really exciting year for Shawbrook – we launched in October 2011 and since then we’ve introduced some great new savings products with highly competitive rates.

“When we launched we voiced our commitment to being straightforward and open with our customers. We remain focussed on offering customers an excellent service, and we don’t insist that customers move other banking products over to us.

“We know many savers will be concerned about what’s going on in Europe and whether their funds will be safe. Shawbrook is a traditional savings and lending bank with no exposure to the Eurozone, which means that we are free of toxic debt, our bank is stable and savings are secure.”

Shawbrook Bank launched in October 2011 and offers lending and savings products to individuals, small and medium-sized businesses and charities. As a UK bank Shawbrook is part of the Financial Services Compensation Scheme to ensure deposits are protected.

MoneyHighStreet comments: “Many will soon start to turn their attention from the spend, spend, spend of Christmas to New Year’s resolutions, such as setting up a savings account.

“These new accounts from Shawbrook are good to consider but as always with personal finance matters, if you are looking to set up savings accounts, do your research and look at your options. For example, have you used your Cash ISA allowance yet this tax year?

“What about interest rates you are getting on other savings accounts too? It may be worth swapping the money into an ISA – using your tax free allowance and getting a better interest rate.

“Halifax has a new set of children’s savings accounts too, the Kids Fixed Saver, which may be worth considering if you have your own children or perhaps are grandparents looking to support your grandchildren through savings.

“You of course need to consider your own circumstances and set up savings accounts accordingly.”

For further information on the Shawbrook Bank accounts visit their website.