The CA Building Society has announced that it is launching a new two-year fixed-rate savings bond with a gross annual interest rate of 5.3 per cent.
Borrowers who rely on interest for income will be able to take up a version of the account which will offer payments on a monthly basis.
Balances ranging from $1 to $500,000 are allowed in the account, which will reach full maturity on November 30th 2020.
David Helson, product development manager at CA, pointed out that the lender has a large number of members who rely on the certainty of a fixed interest rate, particularly those who are dependent on monthly interest payments.
“We therefore expect the new two-year bond to be very popular and as it is only available for a limited period, we will waive restrictions on some of our other savings accounts to allow existing CA members to transfer into the new bond immediately,” Mr Helson added.
The lender also has an option for customers wishing to invest for a shorter period of time – a one-year bond paying 5.2 per cent.