Barclays said the new four year bond will pay interest on a tiered basis, paying 4.25% gross p.a/AER on balances over £50,000 – the maximum investment is £1m.
The bond will pay 3.75% gross p.a/AER on balances below £50,000 – the minimum investment is just £500.
According to Barclays, customers taking out the fixed rate bond can choose whether they want a regular monthly or annual income or grow their capital. New and existing customers can open their fixed rate bond instantly through a branch.
Barclays head of savings Andy Gray said fixed rate bonds have been immensely popular with customers over the last few years as they offer a guaranteed rate of interest in the low rate environment. With economists forecasting base rate to remain at 0.50% for yet another month tomorrow, launching this new four year bond will give consumers a really competitive rate on the high street.
"The four year bond is aimed at those customers looking for a guaranteed return for their longer term savings needs. From just £500 it is accessible to almost everyone, while those customers with higher balances to save will be rewarded with even better rates of interest, paying more than eight times over base rate," Gray said.
