Barclays has launched a new two-year fixed rate bond paying between 3.3 and 3.7 per cent interest.

To qualify for the 3.7 per cent rate, savers will have to place over £50,000 into the bond or else settle for just 3.3 per cent. The minimum investment is £500.

At launch, Barclays said that this product will provide a ‘safe haven’ for customers in the current low interest rate environment.

Andy Gray, head of mortgages and savings at Barclays said savers are lucky to have a bond paying this rate, given the number of providers that have cut rates of late.

He explained, ‘The rate increase will have a major impact on our customers' savings - particularly those customers who are looking to earn a regular income from their savings.

‘This bond gives savers the opportunity to secure a great high fixed interest rate from just £500.’

New and existing customers can open their fixed rate bond instantly through a branch.

Barclays’ current account customers using online banking can apply online or by telephone banking.