Alliance and Leicester offers one year fixed rate savings account

Edited by the Insidemoneytalk editorial team Jan 31, 2008

combined with Legal and General portfolio bond

8.00% per annum gross (5.15% AER) on the savings account.

Long term growth potential on bond.

Alliance and Leicester has launched a new great rate of 8.00% per annum gross (5.15% AER) on their one year Fixed Rate Savings Account, available when investing in the Balanced Savings and Investment Plan.

The plan comprises a one year Fixed Rate Savings Account from Alliance and Leicester and a portfolio bond from Legal and General.

The combination of these products is designed for investors looking to balance short-term security with long term growth potential.

The Fixed Rate Savings Account element offers the competitive annual rate of 8.00% gross (5.15% AER) with no risk to capital.

Investors can rest assured that their savings will grow to a guaranteed sum at the end of the one-year term.

The Legal and General portfolio bond aims to provide higher returns than from a typical deposit account over the medium to long-term (at least five years, ideally longer).

Unlike a deposit account, capital and income in the portfolio bond are not guaranteed and investors may get back less than they invested.

Ewan Edwards, Head of Savings and Investments at Alliance and Leicester said: "This plan balances the need for a safe haven for short term savings, whilst giving the opportunity to invest over the longer term for potentially higher returns than from a typical deposit account." Ewan Edwards continues: "The Balanced Savings and Investment plan suits those who are looking to make their money work harder, but still like the security of keeping some of their money in cash." Summary of the two elements of the plan: Alliance and Leicester Fixed Rate Savings Account.

5.15% annual/gross AER, PLUS a 2.85% bonus, which will be added to the account at the end of the fixed one year term.

Minimum deposit amount £1,000.

Fixed term of one year.

Capital is guaranteed.

Withdrawal restrictions apply.

Legal and General's Portfolio Bond: A minimum investment of £5,000, recommended to be invested for at least five years, ideally longer.

Access to a wide range of funds, each with different aims.

Invest for the potential of income, growth or a combination of both.

Returns and capital are not guaranteed.

The value of the bond and the level of income may go down as well as up and customers may get back less than they invested.

Customers must invest at least 60% of their overall investment in the portfolio bond (subject to a minimum investment of £5,000 in the bond).

A surrender charge will apply during the first five years.

Funds are limited at this interest rate and investors who wish to apply can visit an Alliance and Leicester branch or call 08000 68 66 99 to book an appointment with a Financial Advisor.