Birmingham Midshires, a provider of fixed rate bonds, has launched a one-year fixed rate bond, which will pay a guaranteed rate of 6.86% gross/AER.
The rate offered by the new bond is 1.11% higher than the current base rate. The one-year fixed rate bond is operated via the internet and is accessible to all types of saver, with a minimum investment of just GBP1. The bond will also offer a flexibility to choose to have the interest paid upon maturity or as a regularly monthly payment.
Richard Brown, head of savings products at Birmingham Midshires, said: So far, 2007 has proved to be the year of the saver – three base rate increases to date this year have resulted in a competitive savings market, with some fantastic rates available to savvy savers.