Building Society boosts Air Ambulance

 

 

According to the bond's prospectus, the account will pay a fixed interest rate of 2.51 per cent AER until 31 December 2011.

 

In addition the society will donate around 0.1 per cent interest on the balance of each account from the date of launch to the end of the year to the Wales Air Ambulance emergency service.

The air ambulance service needs to raise more than £5m a year to operate from bases at Caernarfon, Welshpool and Swansea.

 

Paul Straiton, product manager for Principality, said: "Speculation around when exactly interest rates will move upwards may be posing a difficult choice for some savers.

 

"Fixed-rate deals offer security for savers in the long term but in the current climate some savers may feel reluctant to lock money in at the risk that interest rates may rise in the medium term."

Savers can deposit up to £2m each into the account, which can be opened with a minimum of £500. Additional deposits are also permitted while the bond remains on sale but withdrawals are not permitted. The bond is available online, by post or in branch.

 

Adrian Murphy, associate partner of Ayrshire-based Murphy Financial, said: "The bond is a great idea. Any financial product that benefits worthwhile charities has to be applauded.

 

"I can see it being attractive to local people where the investment will support the air ambulance service, even if just with a small amount."