The impact of the Eurozone crisis is now starting to be felt by the man on the street. It means mortgages are gradually becoming more expensive, but on the flip side, as demand for retail savings balances increases, savers are reaping the rewards in the form of higher interest rates.
At 3.20% gross/AER issue 5 of the Internet Extra from AA Savings sits proudly at the top of the best buys.
Yes, I know there is the customary bonus element included in the rate (2.70% fixed for 12 months), but it’s not really asking too much for you to make a note in your diary, iPod or even on the kitchen calendar to switch your nest egg when the bonus expires.
Banks are frequently criticised for their use of promotional bonuses, but just a little organisation on your part means you can beat them at their own game without breaking into a sweat!
The account is operated online only, but it allows unlimited penalty free instant access to your funds with interest paid annually.
Considering the best 1 year fixed rate bond was only paying 3.25% at the start of 2011, savers have benefited from increased competition for their custom and there’s no two ways about it, this latest AA deal is a winner.
My verdict – HIT 9/10