AA two-year fixed rate savings bond
AA Savings has launched a new fixed rate bond that pays a high 3.80% gross / AER for two years.
The minimum deposit in the AA Two-Year Fixed Rate Savings Account is just £1; the maximum £5 million, making it accessible for those who have modest savings as well as savers with substantial deposits to make.
Mark Huggins, director of AA Financial Services says: "This new Bond means that you will know exactly what rate of interest your money will earn. Interest is calculated daily and credited to the account annually. Once you have opened the account - even with as little as £1 - you can make further deposits as long as the issue remains open.
"Although it will be attractive to those with a lump sum to deposit, it is also suitable for new savers who want to build their pot without the temptation of easy-access. "
"The account firmly establishes our position in the fixed-rate market," adds Mr Huggins.
As well as its appealing interest rate, the account allows withdrawals to be made if you want emergency access to your money, subject to a charge on the amount withdrawn, the equivalent to 90 to 180 days gross interest, you may therefore get back less than you originally deposited.
At the end of the term, the AA will offer options including withdrawal of your money or transfer into another account. If you don't take any of these options the money will be placed into a variable-rate easy access account so it can still easily be withdrawn.
AA 2-Year Fixed Rate Savings Account
Interest: 3.80% gross/AER fixed Available from 17 July 2012 Can be applied for online and operated by post Minimum deposit £1; maximum £5 million
Interest calculated daily and paid yearly on anniversary of first deposit
Additional deposits possible once account is opened while the issue remains open
Access permitted subject to a charge on the amount withdrawn, the equivalent to 90 to 180 days gross interest, you may therefore get back less than you originally deposited
Easy Access
This new account follows the launch earlier this month of a tiered easy-access Internet account. Called AA Internet Extra (issue 7). It offers 2.60% gross / AER variable on balances from £1 up to £19,999 and 3.07% gross / AER from £20,000 up to £1 million.
The account includes a 12 month fixed bonus of 2.10% on balances from £1 up to £19,999 and 2.57% for balances of £20,000 or more. After twelve months the variable rate without bonus will apply, currently 0.5% gross / AER
The AA will notify account holders before the bonus period ends.
The account is completely flexible with no restriction on the number of deposits or withdrawals that can be made. Interest is calculated daily and paid annually either into the account or to a linked bank account.
Visit theAA.com to find out more.