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Jul 28, 2006
Cheshire Building Society has announced the offering of a new 12-month
fixed rate bond and two Escalator bonds to the financial market.
The 12-month fixed rate bond is pegged at 5.11% AER (monthly 4.99%
gross, 5.11% gross on maturity) with a minimum investment of £1,000 and a
maximum of £2,000,000. Cheshire
says no additions or withdrawals can be made during the term, though monthly or
maturity interest options available.
Meanwhile, the Escalator bonds offer stepped fixed rates over the term
of the bond. The products are targeted to individuals who are able to invest
money for a two or four-year period and want the guaranteed returns offered by
a fixed rate product. Cheshire
notes that annual or monthly interest options available. Both bonds have a
minimum investment of £500 and a maximum investment of £500,000, with interest
paid annually or monthly into another Cheshire
investment account or into a bank account.
The following rates are correct as of June 12, 2006. Prices are subject to
availability and Cheshire
reserves the right to withdraw or change these prices without notice.
2-Year Escalator Bond
|
Interest paid
|
Annual Rate
|
Monthly Rate
|
|
Gross Rate %
|
Net Rate %
|
Gross Rate %
|
Net Rate %
|
|
To 12 December 2006
|
5
|
4
|
4.89
|
3.91
|
|
To 12 June 2007
|
5.1
|
4.08
|
4.99
|
3.99
|
|
to 12 December 2007
|
5.2
|
4.16
|
5.08
|
4.06
|
|
to 12 June 2008
|
5.3
|
4.24
|
5.18
|
4.14
|
|
AER over the investment term is 5.15%
|
4-Year Escalator Bond
|
Interest paid
|
Annual Rate
|
Monthly Rate
|
|
Gross Rate %
|
Net Rate %
|
Gross Rate %
|
Net Rate %
|
|
Year 1 to 12 June 2007
|
5.1
|
4.08
|
4.99
|
3.99
|
|
Year 2 to 12 June 2008
|
5.2
|
4.16
|
5.08
|
4.06
|
|
Year 3 to 12th June 2009
|
5.3
|
4.24
|
5.18
|
4.14
|
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Year 4 to 12 June 2010
|
5.5
|
4.4
|
5.37
|
4.3
|
|
AER over the investment term is 5.28%
|
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