The Top Easy Access Savings Discussion Area

vickisprings

I'm looking to put some money into an instant access saving account. I'm trying to find a good rate but am flummoxed by the terminology and even Martin Lewis's explanation of AER didn't clear up my confusion.

For example, Abbey Instant Access Saver offers "2.50% gross p.a/AER, which includes a variable bonus rate for the first 12 months of 1.50% gross/AER".

Could some-one explain this in simple terms please? I thought bonuses were something extra but this bonus seems to be 'included' (??) And if the bonus is variable, then why say its 1.50%?

I'm sure this is very basic to many of you but I'd really appreciate your help! Thanks.

Baldur

The 'bonus' is an extra, the underlying interest rate is currently 1% variable, with a 1.5% (currently) variable 'bonus' added to it. The AER (the notional nterest rate if the interest was added once per year) is, therefore, shown as currently being 2.50% but would obviously change in an upward or downward direction, if the variable underlying rate or 'bonus' changed within the one year period.

Abbey and Alliance & Leicester are past masters of offering these convoluted 'bonus' rates, which tend to confuse many savers into believing that they will receive more than is actually the case.

Personally, I would avoid them like the plague and look for a decent, straightforward account.

vickisprings

Thanks Baldur for the explanation... will look more closely at the terms....

Cheers
Vicki

ahai1

I just opened an esavings account with Northern Rock. The rate is reasonable and the service is good unlike some other banks. Here is the link http://www.northernrock.co.uk/savings/

Does anyone know why some accounts are included and others not in the article?

BTW I got a phone call from Anglo Irish to make sure I send them the statement which was really good of them.

ahai1

Everything sorted with Anglo Irish. What a good bank they are.

I have noticed that the AK Bank rate has fallen to 2.72% http://www.akbank.co.uk/html/rates.htm

I have sent my documents to ICICI on Wednesday. How long before I get an email?

medindexer

I want to have an account long-term to keep several thousands in as both a feeder and saver account for family bank account. I want to keep it going for several years (like my C&G a/c which is paying a disastrous rate of about 0.1%), and I'm looking for something with no bonus, just a decent rate. All I can see out there above 2% is the Market harborough a/c. I know u can't guarantee that rates from any one particular institution and its accounts won't plummet, but is there anything else anyone can recommend or is the MH B soc the best on offer?

ahai1

Depending on the length of time you want to keep the money. I will go through my best buys.
United Bank LTD offers a 90 day 3.5% notice account from £1 onwards. http://www.unbankltd.com
ICICI has historically had good rates but they have now gone to 2%. http://www.icicibank.co.uk/
One of my other best buys is AK Bank which has a no notice 2.72% account http://www.akbank.co.uk

That is it really.

jimmykernow

Hello all, I'am looking for a good savings account for my 2 month old baby. Does anyone have any suggestions or any banks/building Societys to avoid.
Cheers

ahai1

Just a follow up. Northern Rock which is on the list as government owned but should be on the list as one of the best accounts as they have a 2% esaver (not sure of the exact name) which accepts faster payments and I persume that it gives it out as well. http://www.northernrock.co.uk

There is going to be talk about foreign banks on the thread most of my best buys are foreign but I would not pay too much attention as the thing is that no one has lost a penny and I suspect that no one is going to lose a penny.

There is a lot of speculation here but I perfer facts.

AK Bank have really good customer services.

ahai1 wrote: »

Depending on the length of time you want to keep the money. I will go through my best buys.
United Bank LTD offers a 90 day 3.5% notice account from £1 onwards. http://www.unbankltd.com
ICICI has historically had good rates but they have now gone to 2%. http://www.icicibank.co.uk/
One of my other best buys is AK Bank which has a no notice 2.72% account http://www.akbank.co.uk

That is it really.

kaspin

Under top paying accounts the Ulster Bank at 3.46% seemed a good deal. However, I was unable to send off the on-line application form. Eventually, I discovered that their system doesn't like Mozilla Firefox - you have to use Internet Explorer! A shame for Linux users......