Tesco Finance has just announced an improved rate for its internet saver account, paying 6.25 percent AER for 12 months.
The finance arm of Tesco has brought in a 12 month additional interest bonus of 1.5 percent, enabling them to bring this outstanding rate to the market. As a spokesman for the company said, this offer could not be timed any better, since consumers are now looking for the best savings rates possible as they look to make the most of their money.
Customers can invest up to GBP100,000 in the Tesco Finance Savings Account, enjoying the bonus interest rate for the first 12 months, after which it will revert to its regular 4.75 percent AER.
According to a study carried out by the Abbey National recently a number of UK people are dipping into their savings in order to pay their ongoing bills.
The Abbey National was looking specifically at money held in ISAs and, having seen around GBP6 billion taken out of them asked customers what the money had been used for. Just over 30 percent of people said it was to cover day to day expenses, the most popular answer provided.
Although it can seem easy to use savings to cover costs the issue comes a little later said an Abbey National spokesman. If a cash ISA had the maximum put into it then any withdrawals cannot be made up later, leaving the account holder with a reduced return through interest.
The Nationwide Building Society is readying itself for the provision of savings products to customers in the Republic of Ireland.
As long as the proposal is approved by both the FSA and the Irish equivalent then the Nationwide Building Society will begin selling savings products to Irish customers by telephone, online and through the post. The move is being seen as a good strategic option for the Nationwide as it expands their geographic coverage and increases the funding options.
Industry commentators have said that the Nationwide Building Society is already in a strong financial position so this step into Eire is set to improve that position still further.