The bond is aimed at savers who will require access to their cash in autumn 2015 and those who expect interest rates to rise after the May 2015 general election.
The bond is available through the bank’s personal e-savings internet banking and by postal application.
James Blower, director of savings at Shawbrook, said: “Many savers are anticipating interest rates to rise in the near future, so are avoiding tying up their money in long-term savings accounts. This bond will work for those savers wanting a shorter-term solution but at a competitive rate.”
Key features
• Annual equivalent rate of 1.85 per cent
• UK residents can invest from £5,000 to £2m
• Interest paid gross or net according to an individual’s tax status on 31 December each year and on maturity
Adviser verdict
Phillip Bray, marketing and relationship manager at Nottinghamshire-based Investment Sense: “The rate’s not bad but does not set the world alight. Clients may not know Shawbrook Bank, but increasingly they are less worried about brands – the essential issue is Financial Services Compensation Scheme protection.”
