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Abbey

Type: Fixed rate bond, 50-plus bond, children's saving bond

Description: Abbey has launched its latest tranche of savings bonds in three categories, one for customers who want a guaranteed rate for a fixed period, a bond for those age 50 and above who want regular income and another for parents looking to save for their children's future.

Conditions: 4.6 per cent net rate for one year for deposits up to £49,999 on the fixed rate bond. For monthly interest payments, fixed rate bond holders get a net monthly rate of 4.48 per cent per year.

The 50-plus bond locks in savings for three years at a net rate a year of 4.12 per cent.

The children's saving bond pays a net rate of 4.96 per cent over four years and 5.15 per cent over five years.

Early withdrawals for all bonds are subject to 90 days of interest penalty.

Verdict: Abbey is offering fairly attractive savings rates but savers should take care to only deposit £50,000 in each bank. The fixed rate bond is clearly designed to take advantage of the financial services compensation scheme guarantee. The 50-plus bond is attractive but only if savers can afford to set aside money for three years and forego the opportunity to earn higher returns elsewhere. Still, a 90-day penalty is not too painful when compared with other Isa products that forfeit all interest completely.

Rating: three stars out of five