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News: Chelsea launches new savings options

Chelsea Building Society has launched a couple of new fixed rate savings bonds - the products comprising 1 Year and 2 Year Fixed Rate Options. The current 1 Year (14th Issue) and 2 Year (15th Issue) Fixed Rate Options are being withdrawn with immediate effect.

The new 1 Year Fixed Rate Option (15th Issue) pays a fixed rate 4.55% gross pa (3.64% net) through November 15th 2006. Corresponding rates if you elect to take monthly income are 4.46% and 3.57%.

The 2 Year Fixed Rate Option (16th Issue) on the other hand pays a fixed rate 4.60% gross pa (3.68% net) through November 15th 2007. Corresponding rates here, if you elect to take monthly income, are 4.51% and 3.61%.

Minimum investment in both cases is £1,000 (maximum £500,000).

For both options, annual interest is first paid on October 1st 2006 and annually thereafter. That's assuming you don't elect to take monthly income.

Withdrawals made before the end of each fixed rate period will be subject to a penalty equivalent to 90 days' loss of interest on the amount withdrawn. Withdrawals are also subject to daily limits - you can normally withdraw up to £250 in cash or £5,000 by cheque on demand. Larger sums by cheque may be withdrawn in a few days.

After the fixed rate period, immediate penalty-free withdrawals are permitted.

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