Interest rates may be falling to near zero levels, but you now have somewhere to save your money and still make a decent amount of interest. The fixed rate bond from The Coventry building society is now offering a fixed 3.70% gross AER interest rate on its 3 year bonds, but you’ll have to be quick as its a limited offer bond and they’ll close the offer to new accounts once they have enough applications.

The 3 year bond is subject to some terms and conditions, such as a maxium investment of £250,000 and a 90 day withdrawal penalty. If you don;t want to tie up your cash for 3 years, they are offering a 1 year fixed rate deal ( www.thecoventry.co.uk/bond1 ) but at a lower interest rate of 3.25% AER gross

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