Saffron Building Society launches new savings bond

by Richard Kilner

Story link: Saffron Building Society launches new savings bond

Saffron Building Society has announced it is launching a new six month fixed rate corporate savings bond.

The firm, which is a regional building society in East Anglia, will offer the new bond to limited companies, charities, clubs and associations who have larger deposits.

An initial deposit of £5,000 or more is required, and the maximum balance is capped at £2,000,000.

New and present customers will benefit from a savings rate of 2.25% gross p.a./AER.

Chief Executive Andy Golding has said that firms and individuals have had a hard time saving recently due to the historically low interest rate.

To help counter this and enable customers to enjoy a better savings rate the new bond has been launched to offer a new way to save.

The Bank of England has held the interest rate at 0.5%, the lowest in history, for months on end.

However, interest rates could rise following the news that inflation has spiked over December, with annual CPI of 2.9% in December and RPI standing at 2.4%.