Money: July 2009

Friday, 31 July 2009

Regular Saving accounts offer higher rates than standard accounts, because you can only invest small amounts per mont and for a short period of time.

Halifax – Regular Saver
Halifax is currently offering a rate of 5pc on its Regular Saver, which is fixed for one year. To qualify, savers must open a nominated account with Halifax at the same time. Savers can invest between £25 and £500 per month into the account, which can be operated online, in branch or by telephone. If access is required to funds or a payment is missed, then the account is closed and the web saver rate is payable.

Lloyds TSB – Monthly Saver
New and existing Lloyds TSB current account customers are being offered a fixed rate of 5pc on their Monthly Saver account. The account has a 12-month term and savers can invest between £25 and £250 per month into the account. Savers can get instant access to their money if required, without incurring any penalty.

Barclays Bank – Monthly Savings
Savers who invest between £20 and £250 per month with Barclays Bank are being offered a fixed rate of 4.17pc. The account has a 12-month term and can be operated online, in branch or by telephone. Savers can get instant access to their money during the term, but a 1.18pc loss of interest penalty will be payable for the month in which a withdrawal is made.

Source: Moneyfacts

More savings accounts offer bonuses

According to research by moneyfacts, the number of variable rate savings accounts that offer bonuses is increasing, along with the size of the average bonus.

Some 16.4 per cent of variable rate savings accounts now offer savers a bonus. A year ago only 13.4 per cent offered bonuses and even fewer (10.1 per cent) offered bonuses in 2007.

The sizes of the bonuses offered are also growing, with the largest bonus offered totalling 2.65 per cent, compared to 1.55 per cent last year. The average bonus offered is now 1.1 per cent, up from 0.64 per cent in 2008.

The average Briton has accessible savings of £2,474, according to new figures from the Yorkshire Building Society.

Despite the bonuses, it is important to look at a savings account in terms of overall interest payment offered and terms rather than being wooed by the bonus offers, says Moneyfacts.

Michelle Slade from Moneyfacts says, "Savers need to ensure they fully read and understand the terms and conditions of any savings account, before they commit their money."

Source:QCK