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Abbey

Type: Bond range.

Description: Abbey has introduced a new range of bond products: a fixed rate bond, 50-plus bond and children’s saving bond. The one-year fixed rate bond is tiered: offering a rate of 5.7 per cent for deposits of £1 to £49,999, and 6 per cent for deposits of more than £50,000. For the two-year bond the fixed rate is 5.2 per cent and for three years it is 5.1 per cent, each requiring a minimum deposit of £1. The 50-plus bond offers regular income with a gross rate of 5.3 per cent for three years, and the children’s saving bond is for four years and pays 5.3 per cent gross AER.

Conditions: No further deposits are permitted once the bonds are active but customers can hold as many Abbey bonds as they wish. The children’s saving bond is for those under age 18 or on behalf of someone aged under 18.

Contact: www.abbey.com

Verdict: Abbey’s 50-plus bond rate is trounced by the competition; Saga offers 6.41 per cent for three years, although this is on a monthly variable basis, and Coventry Building Society offers 6.25 per cent fixed for three years. For the children’s saving bond, Abbey’s peers are only more competitive based on variable rates, making its four-year fixed rate highly competitive in the market. For the one to three-year fixed rate bonds, again there are variable products which predictably far exceed the rates on offer from Abbey but for fixed bonds, Abbey’s range is highly ranked. The conditions and tiered deposit amounts are also relatively standard at the moment. (2/5)