New Fixed Rate Savings Bond From first direct

first direct have launched a new one year Fixed Rate Savings Bond.

The new Fixed Rate Savings bond will mature on 28 February 2011 and has a very competitive interest rate of 2.75% AER.

The savings bond, available to first direct customers, can be used to invest from £2000 to £49,999, although any customers wishing to deposit more than £49,999 can open extra bonds.

Only one deposit can be made, extra money cannot be made into the savings bond once it is opened and no withdrawals can be made during the term of the bond. Should money need to be withdrawn and the bond closed during the term, they will receive any accrued interest and a £100 penalty will be payable.

Matt Colebrook, chief executive at first direct commented, “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. This new Fixed Rate Savings bond, together with our competitive fixed rate e-ISA products mean first direct is offering some of the best savings rates on the market.”

Ultimately savings account decisions need to be your own, as well as the new savings bond from first direct, other options to consider include

• Alliance & Leicester Online Saver Issue 7 is currently offering 2.75% gross p.a./AER including bonus.
• Nationwide e-Savings Plus are currently offering 2.00% gross p.a./AER variable
• ICICI are currently offering their HiSave Fixed Rate Account with an interest rate of up to 4.7% AER