IFA firm M2 Financial has joined with Skandia to launch a new investment bond with a whopping 5.25%...
IFA firm M2 Financial has joined with Skandia to launch a new investment bond with a whopping 5.25% interest rate in a bid to attract more low-risk investors.
However, access to this rate of return comes with some caveates.
M2 says that the interest rate is not fixed and could go up or down in line with base rate changes.
And although the product offers savers instant access, early encashment charges apply to some withdrawals made in the first three years.
To avoid penalties, the bond should be viewed with a minimum term of one year and one day, and for customers seeking maximum returns it should be held at least two years and one day.
Savers can withdraw up to 10% of the original capital each year without penalties.
Managing director for M2 Financial Mark Howard says the bond will be a welcome product for people willing to save.
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