Northern Rock - Best Savings Account?

stuartm

Hi

Northern Rock have been advertising their Tracker Online account which pays a bonus-inclusive rate of 5.1%. The AER rate is shown as 4.30%, but this (as far as I can tell) includes the removal of the bonus in the calculation).

I was about to open a Coventry BS account (planning to transfer in £1K per month then transfer it out again after it has credited), but Northern Rock offer a similar rate without the hassle.

Didn't see any mention of this in Martin's Savings articles or on the forum, so wonder if I'm missing some reason why this is not a good choice?

Thanks for any info.

ManAtHome

Depends if you're prepared to move the cash around every few months (NR are hoping you won't...) and whether you trust them to keep this rate for 6 months (the full bonus period) - their 'guarantee' suggests they could reduce reduce the rate to 4.71% (0.5% below base rate + 0.71% bonus). In the past they've been pretty notorious for dropping rates as soon as they think they can get away with it.

There are a few non-bonus accounts paying around 4.8%, think Birmingham Midshires have a one year bonus account around 4.95%. Work out how much you'd get for 0.25% then you'll have an idea of whether it's worth any hassle.

The 4.3% AER is the standard rate for this account - bonus hasn't been included in the calculation.

caveat_emptor

Did see an earlier post that said NR are about to cut their 'Silver saver' interest rate which will mean an all round cut in savings rates.
If you go for Birmingham Midshires hope you have better luck than I did. Set up the account a month ago and still can't activate.