The Bank of Scotland has a fantastic opportunity for first time buyers saving a deposit for their first home – doubled up savings.
The way this works is that savers who regularly deposit money into a Bank of Scotland savings account, up to a maximum amount saved of GBP5,000, will have the balance matched by the home builder Persimmon. The one proviso is that this only happens if the savings are used as a deposit on a new house.
A spokesman from the housebuilder saw it as making a real difference for first time buyers, though they would still need a considerable amount saved elsewhere in order to make the 25 percent minimum deposit most mortgage providers require. The Bank of Scotland are also in favour of the scheme as they want to help home buyers as much as they can.
The Alliance and Leicester has extended the offer period on its 9 percent gross interest paying fixed rate savings account to give more customers the opportunity to benefit. The one year deal is open to Alliance and Leicester customers who invest in the Balanced Savings and Investment Plan, which brings together the savings account already mentioned and an investment bond. The bond is designed to offer good returns over the medium term, typically around 5 years, while the savings account gives customers a great benefit in the short term. Investment bonds have grown in popularity recently as investors look for safe homes for their money where growth can still be achieved and this Alliance and Leicester offer which combines the high interest savings account delivers all that and more.
A Sainsburys Bank spokesman feels that there are more restrictions and conditions applied to savings accounts than ever before. Having looked at the current state of the market the Sainsburys Bank spokesman has noticed how many savings accounts have restrictions on withdrawal amounts and periods, as well as how it impacts on interest rates, with some quite hefty penalties on some for making withdrawals during the year. Another aspect that has been noted is the use of age limits on some savings accounts, targeting either the younger or older market. Ideally all categories of customer should be able to enjoy similar levels of interest and benefits believes the Sainsburys Bank spokesman.
A new international bond has been introduced by the Alliance and Leicester which is a limited edition fixed interest rate for one year. Investors can sign up for the bond from now and, with a minimum investment requirement of GBP50,000, enjoy an interest rate of 6.65 percent gross if taking the interest payment at the end of the year or 6.45 percent should interest be paid monthly. The Alliance and Leicester fixed rate bond is available to both new and existing customers as long as funding does not come from money already held by Alliance and Leicester. An Alliance and Leicester spokesman, when discussing the new bond at its launch said that they always endeavoured to offer the best interest rate they could and this particular bond should be very popular in what is a highly competitive market.