The Guernsey based bank said the product will be limited and so will close to new investors and be withdrawn once it has reached its funding limit.
The one year bond has a minimum deposit of £10,000 and a maximum initial opening sum of £2m. It also offers a monthly income facility paying an interest rate of 2.8% gross.
Annual interest will be paid on maturity on 30 April 2013. Interest can be capitalised or paid away to an account of the customer’s choice, but additional funds cannot be added or withdrawn during the one year term. Upon maturity, the account reverts to a variable rate easy access structure.
Managing director Jim Coupe said: “This new bond meets a need for those customers seeking a known rate of return over 12 months against the background of uncertain interest rates generally in the market. We are now able to offer customers a comprehensive range of choice of deposit term, from easy access through 40, 80, 120, 180 day notice and now one and two year options.”
