BANK ACCOUNTS

Immediate interest with Santander’s Upfront Interest Bond

Santander has announced the launch of their upfront interest savings bond, giving customers the chance to receive their interest at the start of the bond term.

The Upfront Interest Bond is a new fixed rate savings bond with Gross AER of 3.36%, and will give customers three years’ net interest immediately.

Customers can get a net interest of £1,000 for every £12,000 they save, which will be paid into their Santander current account.

Those who open an Upfront Interest Bond with the bank before the 20^th of December will receive their interest by the 3^rd of January 2012.

"Our revolutionary new Upfront Interest Bond is proving popular with customers wanting more control over their money, allowing them to spend or save the upfront interest however they choose,” said Matt Hall, Head of Savings at Santander.

“Customers can get three years of interest paid upfront on 3 January if they open an account before 20 December - giving a cash flow boost to customers who need a little extra cash to help with the January bills or to treat themselves at the sales.”

The bond can be opened with a minimum of £10,000, for which customers would receive upfront net interest of £833.33. It is a three year fixed term bond, with access to the funds not available until the end of the term.

The bank is also still offering up to £300 cash back for switching to its Preferred, Reward or Premium bank accounts. Customers who switch will also get 12 months of 5% in-credit interest.

The offer was due to finish on the 6^th of November but Santander recently announced an extension for the whole of the Christmas period.

Reza Attar-Zadeh, the banking director for Santander, said: "With the Christmas holiday season not far away now, what better way to get up to an extra £300 towards the festive season?”

Tags: BANK ACCOUNTS, fixed rate savings bond, Gross AER, interest savings bond, santander