Portman Building Society has announced the launch of a new branch-based savings account paying five per cent on balances of £1,000 or more.

The rate payable is guaranteed to remain above or equal to the base rate of earnings until the end of 2007 and will be available from 6th May to new and existing customers.

A minimum investment of £1,000 is required, up to a maximum of £100,000 or £200,000 for a joint account. Interest is paid annually on the first of January.

Customers will be required to supply 90 days notice before they are able to access their cash, however.

"With interest rates on hold for another month, things look rosy for savers," said Helen Shaw of Portman.

"We have taken the decision to launch this product with an excellent rate of five per cent and with a Bank Base Rate guarantee until the end of next year, this product will be very attractive to savers."

The company claimed that the deal leads the market and would be the best savings account choice for many people.


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