Britannia launches new one-year bond

Building society Britannia has launched a new one-year fixed-rate bond which it describes as “striking”.

The product offers an interest rate of 5.9 per cent gross per year, when customers choose to receive their interest on an annual basis.

For investors who would prefer to receive monthly interest payments, a rate of 5.8 per cent will apply.

According to Britannia, this package is “ideal” for customers looking to invest a minimum of £1,000. It will be available from December 1st.

Tim Franklin, Britannia’s managing director of member business, said: “With a market leading rate which is 0.9 per cent above the current Bank of England base rate, this one-year bond offers a guaranteed return for investors.”

Britannia is the second largest building society in the UK, with over three million members, nearly £6.9 billion of gross lending per year and £32 billion in group assets.