Saga Online Top 5 Tracker Account 6.25% Variable

bristolleedsfan

Not sure if this has been posted, handy for those who want to keep some funds accessible and away from Icelandic Banks

http://www.saga.co.uk/money-shop/savings/online-tracker/


SAGA online tracker 6.25 per cent gross

By the time people reach 50 years of age many savers will have accumulated a large pot of money. Because of this many institutions offer products aimed specifically at this segment of the market and the rates on offer can be extremely attractive.

The most well known brand for this age group is SAGA, which has just launched an Online Tracker Account paying 6.25 per cent gross. The rate is linked to the average top five variable accounts in the Moneyfacts best buys, guaranteed until 1.6.10. The account can be opened and managed online and savers can deposit between £1 and £5m. This account is a no-notice account but cash can't be accessed immediately as it must be transferred to a nominated account. Interest can be paid annually or for those looking for a more regular income, monthly.

The launch of this account is great news for the silver surfers and will complement the existing range already on offer from SAGA. The two-year rate guarantee will make this an extremely attractive account to the over 50s, particularly those who don’t want to keep moving their money.

ManAtHome

Top 5 on Moneyfacts average 6.3% (6.296 if you insist..) - will be interesting to see if/when they drop to the low end of the guarantee. Sounds "interest"ing though - a bit BM+Saga'd up at the mo, may give it a go later in the year when some of the fixed-rate stuff matures.

Might apply boot to Sainsbury btm - their "we track the top accounts" currently at 5.5% (didn't go for that one - already had the t-shirt with their "drag and drop" savings accounts)

alanji

ManAtHome wrote: »

Top 5 on Moneyfacts average 6.3% (6.296 if you insist..) - will be interesting to see if/when they drop to the low end of the guarantee. Sounds "interest"ing though - a bit BM+Saga'd up at the mo, may give it a go later in the year when some of the fixed-rate stuff matures.

From the terms and conditions:

Monthly Rate changes: Starting from Monday 2 June 2008 we will change the interest rate on the Saga Online Top 5 Tracker Account each calendar month on the first working day of the month as follows:

The interest rate will be no more than 0.25% gross below the average of the daily averages of the top five gross rates listed on ‘Moneyfacts Savings Best Buys – Internet Savings Account’ throughout the previous month. The daily average will be the rates quoted on the ‘Moneyfacts Savings Best Buys – Internet Savings Account’ page at 5pm on each working day.

We will exclude any of the following from the average rate calculation:

A rate that is priced 0.50% gross or more above the second best buy rate.
A rate that includes a bonus.
A product that has any terms and conditions that prevent no notice access to a customer's investment or that only allow access subject to a charge/penalty.



By using the "gross rate" as opposed to AER Saga obtains an advantage for those accounts which quote a monthly rate (eg Kaupthing Edge)

Current rate by my calcs would be 6.224. Looks good to me, especially when you take into account how much you lose by continual switching - or missing a rate reduction. Pity it does not include bonus accounts, though.