Bank launches loyalty tracker bond
Existing customers offered interest savings
Santander has started offering its existing UK bank customers 3 per cent interest on savings accounts with its Loyalty Tracker.
From August 2 the bank has started paying a variable 2.5% above the Bank of England base rate until September 2011.
This product is open to existing Santander mortgage, investment and current account holders (who must have at least £10,000 to invest) or new current account customers who switch their account, depositing at least £1,000 per month and have at least two direct debits or standing orders set up.
The deal will reward those investors who gamble on the Bank of England raising its base rate.
In addition, Santander has also launched a new 1 Year Fixed Rate Bond that pays a yearly rate of 2.8% (2.76% monthly) on a minimum investment of £1.
Reza Attar-Zadeh, Santander’s director of savings and investments, said: “Loyalty Tracker Bond not only pays a great rate but also ensures that savers don’t miss out on any changes in the Bank of England base rate over the next 12 months.
“With continued speculation on when interest rates will start to rise, we believe this product offers savers the peace of mind that they’re getting a competitive rate today and throughout the term of product.”
The Bank of England’s base rate currently stands at 0.5% and has been at this level since March 2009.