Abbey fixed 6% account (4.8% net) - better than a 1yr ISA

SquareHome

Hi there -

Abbey have recently launched a current account that offers a fixed 6% AER on up to £2,500 for 12 months as long as £1000 is paid into the account each month.The £1000 doesn't have to stay in the account - I've set up standing orders so that this amount floats between my accounts each month.

The beauty of this account is that an unlimited no. of accounts can be opened. I currently have 3 and am planning on opening a 4th tomorrow - so I'll be getting a fixed 6%AER on a total of £10,000 for 12 months - not bad, eh? In addition, there's no need to switch your salary to Abbey to get this account either!

After tax at 4.8%, this account is better than any 1 year fixed ISA around at the moment. If ISA interest rates increase beyond 4.8%, you can simply transfer the money from the Abbey current account with absolutely no penalties! Win-win!

Hope this helps someone!

SQ

PS - I'm not allowed to post a link as I'm a new user. Go the the Abbey homepage, select the 'Bank accounts' tab and check out the details for the 'Preferred In-Credit Rate Bank Account'

Remember - there's no need to switch your salary to Abbey to open this account no matter how much the branch staff may try to persuade you otherwise (see below 'Customers who do not switch')!

Customers who switch
Rates for the first 12 months
6% AER (fixed) on balances up to £2,500 and 0.10%AER (variable) on balances over £2,500.

0% EAR overdraft for the first 4 months (depending on your circumstances)

Customers who don't switch
6% AER (fixed) on balances up to £2,500 and 0.10%AER (variable) on balances over £2,500.

malik999

I admire your dedication.