The Alliance and Leicester has just announced a new savings account that pays interest at 9 percent gross per annum. It is a one year fixed rate account open to customers who invest in their Balanced Savings and Investment Plan.
The Balanced Savings and Investment Plan is made up of a portfolio bond and a savings account. The minimum deposit for the bond is GBP5,000 and at least GBP1,000 for the savings account. Before leaping in investors are advised by the Alliance and Leicester that the recommended term for the bond should be at least 5 years, meaning any money placed here should be left alone for a period of time.
An Alliance and Leicester spokesman said the offer combined a mix of short and medium term savings with the potential for excellent returns, much better than a regular savings account.
The Abbey National has announced a reduction in the interest rates offered on several of its savings accounts, with cuts of 0.25 percent to match the recent base rate cut by the Bank of England.
Commencing on 1 May all Abbey National savings accounts with the exception of the eSaver Direct, Super 50 Plus and 50 Plus Saver will have the 0.25 percent cut on their rates. These ones mentioned will keep their rates as they were.
The Abbey National savings and investments director said that although the rates had been reduced on their accounts it was important to have a savings plan in place, especially in the current economic climate. It is a very competitive market and Abbey are committed to doing the best for their customers.
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.