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Alliance & Leicester

Type: One-year fixed-rate bond.

Description: Alliance & Leicester has launched a new savings product specifically designed for the 50-plus market in the form of its new Premier 50 Fixed Rate Bond, which is paying 7.5 per cent gross a year/AER and is available for a limited time only.

Conditions: The bond matures on September 30, 2009, with interest paid annually, in the anniversary month. The minimum investment is £1000 with a maximum level of £10,000. No withdrawals are allowed. It is available to both new and existing Premier 50 Current Account customers, however it will not be accepting transfers or cheques from other Alliance & Leicester accounts.

Contact: www.alliance-leicester.co.uk

Verdict: This is another 'ageist' product, but it does seems like quite an attractive offer if the investor is in the latter stages of their savings investment, and have some capital that they definitely won't need for a year. With a minimum investment of £1000 to £10,000, this product is not targeted for high net-worth individuals. No withdrawals is a drawback, and investors will have to consider this carefully before locking it away for the fixed period.

Rating: 2/5