Alliance and Leicester (A&L) has unveiled a new savings account called the Directsaver, which will pay interest to customers at 5.25 per cent.
Details were released yesterday (Monday, October 9th) and the account is now open to applications.
A minimum balance of £5,000 is required and investors can deposit up to £100,000. Deposits and withdrawals are made from and to a linked current account, which can be through another financial institution and transactions must be carried out via the telephone or over the internet.
Interest is paid monthly, although no interest is paid on calendar months that contain a withdrawal.
"DirectSaver is ideal for customers who want to earn a high rate of interest on their savings without the risk of a stock market investment," said Ross Dalzell, A&L's savings manager.
"In addition to a great interest rate, the account allows instant access to your money as and when you need it.
"Research carried out by Alliance and Leicester shows that when people are looking for a savings account, half said that they are put off accounts that have a notice period to access their money," Mr Halzell continued, adding that this new product had a higher rate than the majority of notice accounts.To find out more about online savings accounts, click here.
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