The AA is currently offering a competitive 3.15% AER on its Internet Extra (Issue 1) savings account, rising to 3.30% on balances over £50,000.
Switch your savings account after a year
Martyn Saville, Which? senior researcher, commented: ‘This AA account offers one of the best rates available on easy-access savings, so could be a good choice for anyone who doesn’t want to tie up their cash for too long or who may need access to their money at short notice.
‘However, the headline rate on the AA account includes a bonus of between 2.65% and 2.80% for the first year, so it’s important to shop around after 12 months to ensure you’re still getting the best deal. Based on the rates currently advertised, the interest you’ll earn on the account will drop to 0.5% after a year, so while it’s competitive now, it won’t be in 12 months’ time.
‘It’s also disappointing to see the best rate of 3.30% only available to savers with at least £50,000 to put away. The Financial Services Compensation Scheme (FSCS) covers you for savings up to £50,000 in the event of your savings account provider going bust, so you may not want to save more than this amount with any one provider.’
Find the best savings account for you
To compare this savings account with the rest of the market, check out Which? Best Rate savings accounts.
For more detail on the Financial Services Compensation Scheme, read the .
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