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.
The Abbey National is aiming to help smokers kick the habit by encouraging them to save the money they would normally spend on cigarettes.
The typical 20 cigarettes a day smoker spends around GBP170 each month that could be used for many different and ultimately far better uses. Over the period of just a year a smoker who gives up and puts the money they would have spent into a monthly savings account such as the Abbey National Fixed Rate Monthly Saver would have a balance just 12 months later of almost GBP2,120.
An Abbey National spokesman urged smokers to think seriously about their options and consider the benefits of using a savings account to put money to one side. It can quickly build up into a tidy sum and the person becomes healthier into the bargain.
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.