Sean Gardner, director of MoneyExpert.com, said:
"The latest bond from Abbey adds further choice to an already highly competitive market with banks and building societies still fighting for a share of our savings. At 7.01% AER the rate is near market leading with only FirstSave able to make a stronger offer (7.10 AER) on one year bonds.
Abbey’s claim that this is a bond for the high street is somewhat dubious given that the minimum investment is £30,000. However, cash is proving an understandably popular investment after months of continued instability in equity and property markets, and for those looking for a safe home to make an investment this isn’t a bad place to start.
If you have a little less cash to hand then the Principality BS’ nine month bond and the Anglo Irish one year bond look like a good bet offering, 6.9% and 6.8% for an investment of £5,000 and £500 respectively.
Bonds are an ideal investment for people sitting on a pool of cash but if you’re not yet in this position and are looking to build your savings and make a return on your investment then it’s time to think about a regular savings account. Putting £20 or more away each month will mean that your savings grow quickly, particularly when you can expect rates of between 7 and 10 per cent AER from big name providers such as Barclays and Abbey and smaller players such as Norwich & Peterborough and also Skipton Building Society."