Cahoot, a division UK-based bank Abbey National, has launched a new best buy two-year fixed rate bond paying a 4.01% gross/AER.
The company has said that customers can save between GBP30,000 up to GBP2m for the limited offer.
The cahoot bond is available online for all new and existing customers who are transferring or paying in funds not currently held within the Santander Group, which include cahoot, Abbey, Alliance & Leicester, Bradford & Bingley.
To access money before the cahoot 2 year fixed rate bond matures one has to pay an interest penalty charge. AER is based on no withdrawals. The day after the account reaches maturity it will default into a variable rate cahoot savings account. Once this happens account holder will be able to access his account instantly.
Matthew Timms, managing director of cahoot, said: The new cahoot bond offers savers the chance to secure their money with a great fixed rate of interest which is currently 3.51% over the Bank of England base rate. This is a highly competitive bond in the current market that complements cahoot’s existing range of competitive products and with the financial backing of one of the world’s largest banks it gives savers peace of mind and security for their money.
