Cash Accounts
Barnsley BS unveil new e-Bonds in congested market
Hemal Mistry, 11 September 2009
Barnsley Building Society is prepared to shake up the online bonds market with their latest offerings.
The firm owned by the Yorkshire Building Society has launched their new two and four year fixed rate funds.
Both plans are available for new and existing customers to take advantage of, which is made easier with an online application form.
The minimum opening balance for the accounts is £100 and a maximum limit of £2m, no withdrawals are permitted with the schemes.
The two-year e-Bond is offering an annual rate of 4.00 per cent gross, meanwhile the four-year version is giving a tariff of 5.00 per cent gross per annum.
Sarah Lawrence, Senior Savings Product Manager at Barnsley Building Society, says: "We offer a wide range of savings vehicles at the Barnsley including instant access accounts and products for those savers who are looking for higher returns who can lock their money away for longer. We think these products will be really popular, particularly with those people who rely on their savings for income".
These accounts are only accessible online, allowing investors to deposit their money electronically via debit card.
Among other providers, Birmingham Midshires Internet two year fixed rate bond has a slightly better rate of interest at 4.25 per cent gross and a minimum deposit of only £1 is required, otherwise the two plans are very similar.
However, the four-year e-bond by Barnsley BS is in a league of its own, as the nearest competitor is Nationwide with their five-year e-Bond.
It offers the same rate as Barnsley’s four–year online bond, the minimum investment is only £1 but to activate the account the saver needs a FlexAccount card.
Sarah Lawrence concludes: "These new products are only available for a limited period and I would therefore urge savers to act quickly as we expect great demand for these rates."
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