Alliance & Leicester has claimed the top spot in the Which? Best Rate savings account table this morning by increasing the rate payable on its Online Saver Issue 7 account to 2.81% AER.
The rate, which has jumped from 2.75% AER, just beats that on offer from the AA’s Internet Extra account. Both new customers and existing savers with the A&L Online Saver Issue 7 will benefit from the higher rate of interest.
A better savings rate from A&L
Savers with this deal will have instant, penalty-free access to their money online. However, the Online Saver Issue 7 demands that customers make an initial deposit of at least £1,000 to open the account.
In comparison, the AA Internet Extra 2 account pays 2.80% AER interest and requires an opening deposit of just £1. The AA account also scored a marginally better 53% in the latest Which? savings account satisfaction survey, where A&L polled just 50%.
Savers with A&L accounts should be aware that, as of last Friday, their money is protected alongside deposits held with all other Santander banking brands. This is because the separate banking licence that afforded A&L its own protection under the Financial Services Compensation Scheme (FSCS) has been lost. For more information on this change, and how to ensure your savings are safe, read the guide.
Which? Best Rate savings accounts
Which? compares savings accounts based on stringent criteria in order to help you make the most of your money. We look at standard savings accounts as well as fixed rate savings accounts and cash Isas.
For more information on savings accounts and how to choose the right one for you, read the Which? advice guide.
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