Alliance & Leicester bond changes announced

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Alliance & Leicester bond changes announced

Alliance & Leicester has announced changes to its fixed-rate bonds, with the interest rate on its one-year product increasing to 6.65 per cent gross per annum AER, up from 6.5 per cent.

The bank's two and three-year fixed rate bonds remain at the same rate, paying 6.3 per cent and 6.05 per cent respectively.

All of its fixed-rate bonds offer a monthly income option and are available for sums of between £1,000 and £2 million.

For customer's wanting their interest paid monthly, the minimum balance is £2,500.

Martin Leake, savings manager at Alliance & Leicester, said: "Fixed rate bonds provide security of capital and a guaranteed return, so you know exactly what you're getting for your hard earned savings."

Earlier today the bank launched a new range of mortgages which offer lower rates for customers who require a maximum loan-to-value of 75 per cent or less.
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