Vanquis sets the bar with market-leading 2-year bond

Vanquis sets the bar with market-leading 2-year bond

Vanquis' 2-year bond lays down the gauntlet.

 

Vanquis Bank has laid down a mark to its competitors by increasing the rate on their two-year fixed-rate bond to 4.05% (3.24% net).

 

This makes Vanquis’ bond the current market leader, ahead of Yorkshire Bank and Clydesdale Bank’s competitive two-year fixed-rate bonds (4%) and Halifax’s two-year fixed-rate online saver (3.85%).

 

The minimum opening balance is an accessible £1,000 and interest can be paid monthly or annually. The bond is available online only, and cannot be amended during its term.

 

Breaching 4% is an important milestone for medium-term fixed-rate bonds in the current climate, given the Monetary Policy Committee's expectations that inflation will fall below target next year.

 

Not only would this eventuality stunt savers with inflation-linked savings products, but it would also, in all likelihood, constitute a modest gain in real terms for savers at 4% or more despite consistently low interest rates. Interestingly, this news comes after the Post Office decided to withdraw its inflation-linked bond due to extremely strong demand.

 

 

Joe Letts

 


EDIT: 5th December. The Vanquis two-year fixed-rate bond has already been reduced to 3.85%.

Wednesday, 23 November 2011 14:58
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Comments (4)

The comments listed below are opinions held by the individuals posting and are not endorsed by, or representative of opinions held by which4u.co.uk. We cannot be held responsible or liable for the accuracy or content of any comments submitted. We reserve the right to publish, remove or edit comments as we see fit.
  • roger 2011-12-05 09:02:18
    Is this product available as the website states 3.85 interest not 4.05
  • Keith [Editor] 2011-12-05 09:40:15
    Hello Roger. Sorry to say that this product has already been lowered to 3.85. Obviously, as evident here and elsewhere, the market-leading rate gained plenty of publicity, so it is plausible that Vanquis will introduce market-leading rates again on a temporary basis. It's frustrating that these fluctuations allow little time for manoeuvre or decision making, but we hope that you will keep following to see if another leading product emerges in due course.
  • Dave Brown 2012-01-11 18:02:38
    Birmingham and Midshires match 4.05% as well !!
  • Keith [Editor] 2012-01-12 11:27:26
    Well observed, Dave! Yes, Birmingham Midshires' 4.05% bond followed Vanquis' rate reduction in mid-December.

    Unfortunately, we haven't got that listed just at the moment, but we know it's out there.

    Longer-term bonds are improving and that's some consolation for savers at the moment.

    Thanks for reading!

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