A new Halifax savings account, offering an outstanding 10 percent interest rate for regular savers will be made available for a limited period of just 6 weeks, beginning on Monday.
The stand alone savings account requires a minimum monthly deposit of GBP500 each month to qualify and will also pay out an extra 2 percent interest should the customer place an extra GBP5,000 in a specified Halifax savings account. This would add up to 12 percent AER, something that the savings market does not normally see.
A Halifax spokesman stood by this market leading savings account and supported the way it promotes the habit of regular saving. It is a key part of consumers financial planning and this level of interest certainly gets attention.
Although we are always told that saving should be one of the first things we do the latest survey results from the Nationwide Building Society show that only a quarter of us are ranking it highly.
The main reason for this at the moment has to be the cost of living, which is changing the focus of the population towards covering the rising costs of bills rather than saving. This is supported by an aspect of the Nationwide Building Society study that showed how over 60 percent of people felt they were not saving enough.
In real terms this is the time when people should save even harder than usual. Looking at an uncertain future consumers really need to be building up a resource they can call upon should they face unexpected costs. The Nationwide Building Society, along with most other financial institutions, suggests having enough cash to manage for around three months.
A new cash ISA has been introduced by the Alliance and Leicester, with an interest rate of six percent per annum and a minimum balance of just one pound.
The Easy ISA as it is called allows the usual maximum amount of GBP3,600 in each tax year, with management through either phone or internet. The offer is open to all consumers whether they are existing Alliance and Leicester customers or completely new to the building society.
The Easy ISA name is very apt and will hopefully bring more savers into ISAs where they have previously been put off. As an Alliance and Leicester spokesperson explained, a cash ISA is just like a normal savings account, the difference being that no tax is paid on the amount saved.
