The Cambridge Inflation Linked Bond Receives Surge in Interest
All applications for the five year bond must be received by 15th September 2011*. The Cambridge Inflation Linked Bond pays customers a return, at maturity, that tracks the annual rate of inflation, as measured by the Retail Prices Index (RPI), plus a guaranteed 1.00% gross p.a./AER** fixed for five years.
Andy Lucas, Head of Cambridge Direct at The Cambridge Building Society says: “We have seen surge in customer interest following the recent withdrawal of the NS&I index-linked certificate.
“Customers who want to take the opportunity to invest in a product that offers protection against the effects of inflation need to take advantage of the inflation linked products that are left in the market whilst they are still available.”
The bond requires a minimum investment of £5,000 and has a maximum investment of £85,000. Withdrawals are not permitted during the five year term and no additional deposits can be made.
Customers nationwide can now take advantage of The Cambridge Inflation Linked Bond by downloading a brochure and application form (online PDF) and posting with their cheque to The Cambridge Building Society, PO BOX 232, 51 Newmarket Road, Cambridge, CB5 8FF (to be received by 15th September, 2011).
To find out more about the Inflation Linked Bond and other savings products, customers can visit www.cambridgebs.co.uk/savings or call 0845 601 3344.
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Notes to editors:
*Applications opened prior to this start date will earn 1.00% gross p.a./AER fixed until 15th September 2011. From the 16th September 2011 until 16th September 2016 the bond will earn the 1.00% plus a variable rate of interest based on the RPI readings taken each year during that period. The variable interest will be calculated annually and will be based on the RPI readings, between 2011 and 2016, published by the ONS in September each year. The latest published RPI reading was 5.2% for May 2011. The overall return will be payable on the maturity date, 16th September 2016.
**Gross rates do not take into account deductions of Income Tax. The Annual Equivalent Rate (AER) is a notional rate which illustrates what the gross interest rate would be if interest was paid and added to the account annually.
For further information, images and interviews, please contact Suzanne Hazell, PR Officer at The Cambridge Building Society via email shazell@cambridgebs.co.uk or phone 01223727653.
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By Suzanne Hazell on Thursday 8th September 2011
