Spanish banking giant Santander is continuing its assault on the savings market with its latest table-topping rate available under its Alliance and Leicester brand.
The internet only Online Saver Issue 5 promises to give 3.15% which matches that offered by the Birmingham Midshires building society. Alliance and Leicester says the rate is open to both new and existing customers.
See our savings accounts Best Buys for other great savings deals.
Top savings rate not all it seems
Although the headline savings rate is high, the account includes a tiered bonus of between 1.65 and 2.65% depending on your balance. That means that customers will only get the high rate of 3.15 per cent until August 2010, after which rates will drop as low as 0.5% for those with less than £25,000.
James Daley, editor at Which? Money, said: ‘A&L’s new account is offering a great headline rate of 3.15%, but savers need to put a reminder in their diaries to switch out of this account in a year’s time. Although bonuses are not uncommon in the savings market, it is unusual to see such large bonuses. This means that in August next year, savers will be earning poor rates as low as 0.5%. Only open this account if you know that you’ll have the discipline to move your money again in 13 months time.’
Santander has launched a concerted attack on the UK savings market of late. In June it announced that a savings rate of 6% would be available to new customers of Alliance and Leicester’s Premier direct and Premier 50 accounts.
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