Clydesdale/Governor Money savings

Clydesdale Bank/Governor Money

Type: Fixed-rate bond and cash Isa

Description: The cash savings platform Governor Money has launched two savings products through Clydesdale Bank. There is an exclusive one-year fixed-rate bond paying an AER of 3.5 per cent, and a five-year cash Isa paying annual interest at 4.05 per cent a year, fixed until 31 July 2017.

The one-year bond accepts deposits from £1000 up to a maximum of £100,000, while the cash Isa accepts new Isa money up to the increased allowance of £5640, and also transfers from existing Isas up to an maximum of £50,000.

Governor Money was launched in April last year and is a subsidiary of mutual Family Investments.

Conditions: Withdrawals are not permitted from the one-year bond except in event of death. Savers who want to access money in the cash Isa before the end of the term will need to close the account and pay a penalty equivalent to 180 days of interest.

Contact: www.governormoney.com

VERDICT

Colin Jackson, director of Essex-based Baronworth (Investments & Financials), said: “If you’re looking for a standard one-year fixed-rate bond paying interest at the end of the term, then 3.5 per cent is the best rate.

“The five-year cash Isa at 4.05 per cent is not bad, but currently Birmingham Midshires is offering a five-year-cash Isa paying 4.25 per cent.

“With Birmingham Midshires, clients also have a choice of annual or monthly income, whereas Clydesdale only pays annual interest.”

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