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Alliance & Leicester

Type: One year fixed-rate bond.

Description: Alliance & Leicester is offering a fixed-rate bond paying 6.5 per cent AER.

Conditions: The bond, available in branches to new and existing customers of the Premier range of current accounts, is fixed until 30 November 2009. The 6.5 per cent rate gross will be paid on lump sum investments between £1000 and £10,000, which replaces the Premier Regular Saver. New Premier account applicants must switch all direct debits or standing orders to a Premier current account using its Premier switching service within 11 weeks from account opening. Only one bond for each Premier current account in single or joint names and only one bond for each person can be held. The bond must be funded with money from a non-Alliance & Leicester account.

Contact: www.alliance-leicester.co.uk

Verdict: The 6.5 per cent offering is competitive for a one-year fixed-rate bond, so it will be attractive to investors amid the current gloomy economic climate. But there are better offers out there, such as Anglo Irish bank, which is offering one-year fixed at 7.05 per cent, so it may not be the most desirable. With a minimum investment of £1000 to £10,000, this product is not targeted for high net-worth individuals.

Total: 3/5