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 survey by the owner of the Egg card, only around half of employees in the UK have savings that would cover them for at least 4 months. This is the average time people find themselves between jobs for having been made redundant.
Egg also looked at the amount of money needed to live in the UK today, which works out to GBP1,077 per month, without any luxury purchases included. So four months at this level should be the minimum level of savings held by people in the UK. As stated then half the UK working population would be unable to sustain themselves if they found themselves out of work.
An Egg card spokesman urged people to seriously consider their own situation as finding themselves in a position where they are unable to meet their monthly bills would be disastrous for many families.
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According to information from the Abbey National savings division the people of the UK have been putting their money away to pay for a summer holiday, with Europe being the most popular choice.
With the value of the pound dropping against the Euro this means that summer holidays will cost more this year, meaning consumers need to save more for their break. With the average holiday costing over GBP1,600 it is good that the people of the UK have been saving their money to cover this cost, although a small percentage will be using their credit cards to pay.
The monthly cost for the average holiday is a little under GBP140, which could have earned the full amount needed in one of the excellent Abbey National savings accounts.