Abbey National is connecting its customers up to the world wide web with the second version of its e-bond.
e-bond is a deposit-based high interest account with a one-year fixed rate of 6.4 per cent, which will mature on September 1, 2001. It is aimed at investors who are looking for a safe product that can be left for a year to grow.
The product joins the small number of bonds that are available on the internet. Offered exclusively via the world wide web, investors can apply to open their bond via the internet and then track the progress of the bond online. The rest of the administration is dealt with by post as normal. One drawback to the product is that because it can only be applied for online this might prevent it reaching clients who do not have access to a computer.
e-bond enters a market that is already crowded with similar products. These include the Sun Bank guaranteed investment account, with a rate of 6.6 per cent and the capital millennium bond from Julian Hodge bank with a rate of 6.8 per cent.