New internet savings account from AA Savings

AA Savings has launched a new easy access, internet savings account offering up to 1.70% gross/AER variable (1.36% net).

The AA Internet Extra (Issue 10) account offers tiered interest rates.  The minimum deposit is £1,000, although money can be withdrawn to leave as little as £1 in the account.  However, savers with balances of £50,000 or more benefit from the highest interest rate of 1.70% gross/AER variable, including a 1.20% 12-month bonus.
 
Interest is paid on the anniversary of the first deposit, either into the account or a linked bank account.
 
Says Mark Huggins, director of AA Financial Services: "Internet Extra aims to offer a year of saving with potentially good returns given the currently low market rates, but without sacrificing flexibility.
 
"Of course, many will be unable to deposit £50,000 from the word go, but the account does enable savers to make contributions to their balance, increasing their interest rate as they pass the savings tiers.
 
"Customers can either make regular payments or simply pay in as much as they like when they like.  Their money is available as and when they need it and there is no limit to the number of withdrawals that can be made but this may result in them getting a lower interest rate."
 
Account holders saving £50,000 and above benefit from the highest interest.  Below that, tiers range from 0.50% gross / AER variable for balances of £1 - £999.99 to 1.60% gross/AER variable including a 12 month bonus of 1.10% for balances of £20,000 - £49,999.99. At the end of 12 months, the variable rate without bonus will apply, currently this is 0.50% gross/AER variable.
 
Mr Huggins adds: "AA Savings has a good track record of offering great account rates. Savers will be notified when the bonus comes to an end and they can move their money into another AA account, or withdraw it once the bonus period has ended."
 
The account is available on theAA.com/savings and is easy to open.