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.”
• 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
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.”