Co-operative Financial Services launches 5% three year bond

Co-operative Financial Services (CFS) has launched a three-year savings bond with a fixed rate of 5%.

The bond is available from today and can be opened with a minimum investment of £5,000, up to a maximum of £1 million. Savers are permitted a 30 day window to access their funds and close the account at the end of each 12 month period – although interest penalties will apply at 2% for that year (i.e. closure at end of year 1 will earn 3%. Closure at end of year 2 will earn 5% in year 1 & 3% in year 2).

John Hughes, Director of Retail products at CFS, said:

“We know that access to funds has become an important issue for customers in the current climate so we’ve introduced an annual window for savers to access their money and close the account should they wish.”

“As we edge towards the end of 2009 – a year which has seen some of the lowest interest rates ever – we’re hoping to end the year with a bang and give savers a real Christmas boost. This launch is also a major step for the business, as the first new product that is available from both Britannia and The Co-operative Bank, making it even easier for people looking to maximise their savings and giving them a taste of things to come.”

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