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Give your savings a Brexit bonus?

If you ever wanted a chance to turn your dinner table conversation into cash… read on.

brexit-bond-gypsy-roseThe election is behind us and, despite the surprise result, we are still left with the looming prospect of Britain’s exit from the EU.

Whether you were a Remainer or a Leaver is immaterial, the Brexit process rolls on. What matters now is deciding whether you are an optimist about Brexit or a pessimist?

As of today (June 14) you can use your savings to aim for a 2 per cent bonus at the same time as guaranteeing 1% a year interest.

Now savers have an opportunity to back their belief in which direction Brexit will take – and hopefully give their savings a lift.

The Family Building Society is proud to announce the launch of our unique Brexit Bond.

It works like this:

The Brexit Bond is a fixed term savings bond that 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). The Brexit Bond matures on 2 May 2019.

The choice you have is quite simple: 

  • If you believe the outcome will be positive for Sterling and it will strengthen against the Euro you 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. 
  • But if you are negative about the outcome and expect the Pound to weaken against the Euro you 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.

This is based on the official Bank of England Sterling v Euro price of GBP1 = EUR1.1535 and we’ll use the same rate published by the bank on 29 March 2019 – the day the UK is due exit the EU.

In either case, your savings are safe and will of course accrue 1 per cent interest per year during the two-year period. So even if you make the wrong call you will win something.

You should be aware, however, that once you have invested – anywhere between £10,000 and £150,000 – you cannot change your mind and switch between the two bonds.

Have fun and bon chance.

Find out more about the Brexit Bond.

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Epsom
Surrey KT17 4NL
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