Nottingham Building Society claims that the new bond is suitable for savers seeking to invest between GBP1,000 and GBP250,000, and not needing access to their funds for at least six months. After September 1, 2008, savers are able to withdraw their money penalty-free.
Clare Roberts, product manager for savings business at Nottingham Building Society, said: Any UK resident can take out this new postal fixed rate bond and earn a highly competitive rate of interest.
In practical terms, this means someone investing GBP25,000 will see their savings grow by GBP836 during the minimum six-month period. We’ve designed it specifically to appeal to people who are looking for a very attractive headline rate, and a relatively short lock-in period for their funds.
