The personal finance arm of Saga Insurance has just brought out a new interest rate guarantee for their online savings account.
The online savings account is now guaranteed to offer an interest rate that will always be with a quarter of a percent of the top 5 variable rate accounts average. Saga Insurance personal finance division has calculated that the average rate as it stands is 6.25 percent gross, working out to 6.43 percent AER.
New customers can sign up to the new savings account online at the Saga Insurance website, whilst existing online savings account customers will see their interest rates changed automatically. The account only needs a deposit of one pound to open and as such offers an extremely attractive rate.
The Abbey National is making a one year fixed rate bond available for a limited period, with an interest rate of 6.75 percent.
To earn this high rate the bond needs an investment of at least GBP30,000, though anything from GBP1 upwards to that figure will still return a very attractive 6.35 percent. The Abbey National investment bond is on limited availability, with a window of less than a month to get money into it. Starting on August 4 the offer closes at the end of August.
The market really likes fixed rate savings bonds said an Abbey National spokesperson, hence their introduction of this particular one now. Anyone interested is advised to act quickly to ensure availability.
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.
