"Our innovative Brexit Bond gives savers a clear choice; one pays a bonus if the Pound falls against the Euro, the other if the Pound rises."
The Brexit Bond offers a fixed interest rate of 1% per annum plus a potential 2% bonus at the end of the fixed term. The bonus is dependent on the change to the Pound to Euro exchange rate between 28 March 2017 (the day before Article 50 was triggered) and 29 March 2019 (the date when the UK is due to exit the EU).
If savers are optimistic about the outcome and expect the Pound to strengthen against the Euro they can invest in the Brexit Optimist Bond which will pay a 2% bonus at maturity if the Pound buys more Euros on 29 March 2019 than on 28 March 2017.
If savers expect the Pound to weaken against the Euro they can invest in the Brexit Pessimist Bond which will pay a 2% bonus at maturity if the Pound buys fewer Euros on 29 March 2019 than on 28 March 2017.
No bonus is paid if the prediction is incorrect, however the 1% fixed rate is guaranteed.
Director of Business Development Keith Barber, said: “This is a unique opportunity for savers to vote with their wallet on their view of the post-Brexit landscape. Are hard pressed savers reaching for their sunglasses or looking for their raincoat?
“Brexit is an emotive subject. Our innovative Brexit Bond gives savers a clear choice; one pays a bonus if the Pound falls against the Euro, the other if the Pound rises. Of course we live in an uncertain world and there are many other things that affect the Pound:Euro exchange rate, not just the Brexit negotiations. This means that Brexit may not be the dominant factor determining the exchange rate on 29 March 2019. Irrespective of how savers voted in the referendum in June 2016, they now have a further opportunity to express their views of Brexit and how it may benefit their savings.”
