Barnsley Building Society's e-bond launched

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Barnsley Building Society's e-bond launched

Tue 25th Aug 2009

Barnsley Building Society has announced that it is offering an e-bond at 5.4 per cent interest over five years.

Their e-bond is also available on three and four year terms and the interest rate drops to 5 and 5.15 per cent respectively.

Sarah Lawrence, senior product manager at the organisation, commented that fixed-rate online bonds are popular at the moment but that many customers were planning on holding out as they believe interest rates will rise.

She said: "Three, four and five-year bonds offer members excellent, long-term value. By waiting savings could miss out on significant returns."

While she agreed that the Bank of England would probably raise its base rate above the current 0.5 per cent some time in the future, she did not believe that savings rates would also automatically increase.

The base rate was lowered to 0.5 per cent in March of this year, with the Monetary Policy Committee voting to continue to keep it at this rate earlier this month.

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