Alliance & Leicester launches new fixed-rate savings bond

A new one-year fixed-rate savings bond for large balances has been launched by Alliance & Leicester International Limited (ALIL), offering an interest rate of 5.3 per cent.

Customers can deposit between £25,000 and £1 million in this account, which will reach full maturity on August 31st 2007.

Interest can be paid on either a monthly or annual basis, either into another ALIL account, or by transfer into an account on the Isle of Man, UK or the Channel Islands.

For customers who choose to receive their interest payments on a monthly basis, an annual equivalent interest rate of 5.29 per cent, or 5.17 per cent gross, will be paid.

Simon Hull, managing director of Alliance & Leicester International, commented: “Our range of fixed-rate bonds continue to be exceptionally well received.

“The rate offered on our latest fixed-rate bond is highly competitive in the market and the term gives savers the option of accessing the market again for the best deal in 12 months’ time.”