Savers who were optimistic about the future strength of the pound when Article 50 was triggered will be rewarded through the Family Building Society’s ‘Brexit Bond’.
The society’s ‘Brexit Bond’, offered when Article 50 was triggered in March 2017, gave customers the chance to 'vote with their wallet' and offered two variations of the bond — one gave a 2 percent bonus if the pound was stronger two years on and the other gave a 2 percent bonus if the pound was weaker by March 29, 2019, the original date the UK was due to leave the EU.
According to the building society, 44 percent of those who took out the bond were optimistic, while 56 percent were pessimistic about the state of the pound post-negotiations.
The pound to euro exchange rate published by the Bank of England for March 28, 2017 was 1:1.1535. On March 29, 2019, the pound had strengthened slightly to 1:1.1623.
Therefore, the 44 percent of savers who were optimistic will receive the 2 percent bonus at maturity, but both groups will benefit from a guaranteed 1 percent fixed interest on the savings.
Director of business development at Family, Keith Barber, said: "When Article 50 was triggered no one could have imagined the constitutional crisis we now find ourselves in.
"At the time we gave savers the opportunity to vote with their wallets and gave savers a clear choice; one pays a bonus if the pound falls against the euro, the other if the pound rises."