Alliance and Leicester extends one year fixed rate savings account combined with investment bond

Edited by the Insidemoneytalk editorial team Jul 2, 2008

9.00% gross pa/AER on the savings account.

Long term growth potential on the investment bond.

Alliance and Leicester has extended the offer period for its one year Fixed Rate Savings Account, with a great interest rate of 9.00% gross pa/AER.

This offer is available to customers choosing to invest in the Balanced Savings and Investment Plan.

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

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

The Fixed Rate Savings Account element offers the competitive annual rate of 9.00% gross pa/AER and investors can rest assured that their savings will grow to a guaranteed sum at the end of the one-year term.

Customers have access to a wide range of investment bonds from Legal and General, which aim to provide higher returns than a typical savings account over the medium to long-term (at least five years, ideally longer).

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

In addition, customers may also benefit from an additional 2% enhanced allocation if they choose to invest in a With Profits Bond as part of their Balanced Savings and Investment Plan.

Terms and conditions apply.

Matt Hall, Head of Savings and Investments at Alliance and Leicester said: "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 funds in cash." Summary of the two elements of the plan: Alliance and Leicester Fixed Rate Savings Account 9.00% gross pa/AER*.

Minimum deposit amount ?1,000.

Fixed term of one year.

Withdrawal restrictions apply.

A choice of Portfolio Bond, With Profits Bond or Capital Protection Bond.

A minimum investment of ?5,000, recommended to be invested for at least five years, ideally longer.

The option to 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.

A surrender charge will apply during the first five years.

Enhanced allocation offer.

Customers will receive an additional 2% allocation of units when investing into a Legal and General With Profits Income and Growth Bond up to 30 September 2008.

This is a limited offer and investors who wish to apply should visit an Alliance and Leicester branch or call 08000 68 66 99 to book an appointment with a Financial Advisor.