AA, ING, Abbey, etc...

pgp566

Just been checking some MSE top hotlist saving accounts...

AA Internet Saver: Interest HAS to be 'paid away' - not only is it NOT paid into the savings account, it CANNOT be paid back in after it has been 'paid away'! Is it just me or is this totally and utterly crackers? In more than 3 decades of savings experience I have never come across anything as barmy as this - sounds like they need some very basic education about savings, such as the concept of 'compound interest'.

ING Direct: Looks to me like that headline grabbing 6.5% _includes_ a 1.66% bonus for just 1 year. After that the rate is apparently 4.75% - something apparently not spotted by MSE which lists it as a 'clean' account. Perhaps I'm wrong but if not this is certainly NOT a 'clean' account.

Abbey eSaver Direct: That 6.5% looks great until you read that it drops to 6.19% for making just ONE withdrawal a year, AND drops to just 2.75% during any month when a withdrawal is made!

By comparison it seems to me that Sainsbury's at 5.5% is not too bad after all - it really is a 'clean' account as I know from personal experience - the 5.5% continues regardless of the time period or the number of withdrawals.

Does anyone know of any savings accounts offering 6% or more that are REALLY and TRULY 'clean', and preferably NOT having any connection with HBOS?
Thanks

Pendle_Gazza

pgp566 wrote: »

Does anyone know of any savings accounts offering 6% or more that are REALLY and TRULY 'clean', and preferably NOT having any connection with HBOS?
Thanks

With the base rate going down, it's highly unlikely there will be much left over 6% at all.

pgp566

Pendle_Gazza wrote: »

With the base rate going down, it's highly unlikely there will be much left over 6% at all.

Many thanks for replying! However the emphasis was on 'clean' accounts rather than best possible interest rate. That's why I'm happy with Sainsbury's at 5.5%, because it really is 'clean'. But what with current market turbulence I need a second account..

So let me rephrase the question: based on experience, what other savings accounts offer a decent rate (~5% or more) that are really and truly 'clean', i.e. no catches, hooks, gotchas, caveats, etc?
Thanks

Baldur

pgp566 wrote: »

That's why I'm happy with Sainsbury's at 5.5%

Do you really imagine that the Sainsbury's account's interest rate won't drop in line with the BOE 0.5% cut yesterday? I used to use a Sainsbury's account but haven't bothered with it for a long time, due to constant rate adjustments.

noh

egg savings 6.3% fixed for one year

http://www.egg.com/visitor/0,,3_11093--View_401,00.html

[Deleted User]

Bank of Scotland IASA pays a clean 5% currently and comes with a cash card too which is handy in the current climate.

maypole

pgp566 wrote: »

Many thanks for replying! However the emphasis was on 'clean' accounts rather than best possible interest rate. That's why I'm happy with Sainsbury's at 5.5%, because it really is 'clean'. But what with current market turbulence I need a second account..

So let me rephrase the question: based on experience, what other savings accounts offer a decent rate (~5% or more) that are really and truly 'clean', i.e. no catches, hooks, gotchas, caveats, etc?
Thanks

I also have a sainsburys account, but need another one also, as I am at the limit. I am going to look on moneyfacts. Do you know if sainsburys bank is owned by one of the big banks?

Baldur

maypole wrote: »

I also have a sainsburys account, but need another one also, as I am at the limit. I am going to look on moneyfacts. Do you know if sainsburys bank is owned by one of the big banks?

Separately authorised by the FSA, see this table.

zzzLazyDaisy

If you are over 50 the coventry BS pays 6.25% fixed for one year - no restrictions on deposits or withdrawals. Although this rate is only guaranteed for a year, my first 12 months has just passed and they wrote to me to say that they had put me on the current fixed rate for another 12 months.

pgp566

Baldur wrote: »

Do you really imagine that the Sainsbury's account's interest rate won't drop in line with the BOE 0.5% cut yesterday? I used to use a Sainsbury's account but haven't bothered with it for a long time, due to constant rate adjustments.

Of course not. It's a variable rate. I can only quote what the rate is currently.

Actually after you subtract the 1st year bonus of many other savings accounts the Sainsbury's rate of 5.5% holds up pretty well and it's been consistenly good with no caveats at all.

Thanks to everyone else who responded! In the meantime I did some research myself. I need to be careful where to put money because of the £50K protection limit and I already have money with Halifax and Sainsbury's -- see here:
http://www.moneysavingexpert.com/savings/safe-savings#whatcounts

In the end I decided to go with Tesco as a second account at 6.5% (variable) including 1.5% 1st year bonus. That's the only caveat but I can change to something more permanent after the first year - I just need a temporary holder for the money that's as strong as possible and independent of any other institution.
Thanks