Alliance & Leicester has announced the forthcoming launch of a new online savings account that will pay a market-leading 6.60 per cent interest.
The eSaver issue 2, launched today, will offer the top interest rate on the market, but its terms and conditions make it unsuitable for all, primarily targeting customers who wish to lock away their investment for the long-term in return for higher gains.
Customers of the new online savings account
can invest from £1 to £500,000; it is designed for longer-term savers because free withdrawals can only be made in the month of July, otherwise interest will be lost for that month, so it is not for those who need to dip into their savings on a regular basis.
If a withdrawal is made in any month other than July, all potential interest for that month will be lost, but interest can be paid into another account automatically, and this is not treated as a withdrawal.
The interest, guaranteed to remain at least 0.50 per cent above the Bank of England base rate until February 28, 2010, is paid monthly, so Alliance & Leicester expect many customers to use the account as a way of saving for the long-term whilst boosting their monthly income.
Customers who find that they do need fast access to their money can rest safe in the knowledge that they can have access to their money if they really need it, without having to give notice.
"This new account offers a market leading return and, with the cost of living on the increase, it's great to know your money can now work even harder." Hetal Parmar, manager for savings at Alliance & Leicester
said of the eSaver issue 2.
The account is ideal for those who need help saving up for large purchases, without the temptation of making withdrawals, Mr Parmer continued, such as a deposit for a house, a new car, or preparing for retirement.
As an online savings account
, the eSaver issue 2 offers 24 hour access and management, good for those who like to keep an eye on their investment and watch their money grow.
© Fair Investment