Alliance and Leicester has re-launched its 12% Premier Regular Saver account, but only new customers opening a Premier Current Account with the bank qualify for the savings rate.
The Premier Regular Saver account is a one-year fixed-rate savings account and customers can transfer between £10 and £250 a month from their Premier Current Account into their savings fund. The account, which is designed to encourage regular savings, can be opened with just £1 and customers can save up to £3,000 in total.
Hetal Parmar, manager for savings at A&L, said: "Premier Regular Saver is a fantastic incentive for people to kick-start a savings habit and, at the end of the 12-month period, they will have saved up a nice little nest egg."
Meanwhile, customers that already hold Alliance & Leicester current account
can earn 15 per cent PA gross/AER, providing they take out an insurance product with Legal and General, for example non-mortgage related life cover or life and critical illness insurance
(either separately or together).
Alliance and Leicester Commercial Bank has also introduced three new business bank accounts
this week after discovering that 45 per cent of businesses pay money into a deposit account. Two are instant access accounts – the Base Rate Beater and the Business Instant Savings Account – while the other is a fixed account, the Fixed Term Treasury Account.
Director of business banking at A&L, Steve Jennings, said: "From recent research we know businesses are missing out on more than £500 million each year in extra credit interest, which highlights the importance of businesses researching the market to ensure they are receiving a competitive return."
"With one in six (16 per cent) of SMEs [small and medium enterprises] having more than £20,000 a year to save, finding the best home for your funds can make a real difference to the bottom line."