Offering a competitive Annual Equivalent Rate (AER) of 3.82%, the bond guarantees the rate for its lifetime of 15 months. The AER is based on a calculation of what the holder effectively receives if the interest that was applied throughout the year stayed in the account and itself earnt interest.

Saga bill their bond as a way of getting control over their finances. As little as £1 can be deposited and bond holders can choose to receive their interest paid either monthly, or yearly.

The Saga Personal Finance Bond joins a wide range of products, including two cash ISAs which were recently launched and which again offer the choice of monthly, or yearly interest payments.

With the Saga One Year Fixed Rate Cash ISA annual interest option, there is a rate of 2.95% tax free AER. With the Saga One Year Fixed Rate Monthly Interest ISA monthly interest option, the rate is slightly lower at 2.91%.

Mminimum deposit is £1 and the maximum deposit is dictated by the total ISA cash allowance. There is no notice period if you wish to withdraw your money and interest is calculated daily.

Mr Andrew Goodsell, Chief Executive of Saga Group, said: “Our approach is to offer an increased range of good value savings products to our customers, this is even more imperative at a time when savers, and pensioners in particular, are seeing their savings income reduced as a result of successive interest rate cuts.”

Guest Article by Neil Camp