10% Rate Regular Saver Account Announced
New savings account with a 10% interest rate to be launched by Alliance and Leicester - but limitations apply
23rd October 2005
Banking group Alliance and Leicester have announced the launch of a new savings account with an attention-grabbing AER of 10%. However, limitations apply which mean the offer isn't necessarily as attractive as it might seem at first glance.
- The account is only available to new customers who also open one of A&L's current accounts - existing Alliance customers will only get 4.5%.
- The rate will only last for 12 months, after which it will revert to a lower rate.
- Savings cannot be deposited as a lump sum, but must be paid in monthly, with an upper limit of £250 a month.
The need for monthly deposits is perhaps the limitation that detracts from the offer the most, as it results in the actual return on the total amount deposited over the year being closer to 5%, half the headline-grabbing rate.
Read More: BBC Moneybox: A&L to offer 10% for savings
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