AA savings accounts offer top rates for all balances

AA Savings has improved its 2-Year Fixed Rate and Internet Extra variable easy-access savings accounts for new savers, by removing the interest rate tiers for different savings balances.

Each account now offers the same rate of interest to its account holders regardless of their balance, allowing even modest savers access to the same rate as those with much larger deposits.
 
Previously, different interest rates applied depending on the balance.
 
The 2-year Fixed Rate account now pays 2.25% gross/AER for those saving from £1 to £5 million (£10 million for joint accounts). Deposits should be for the full amount as additional deposits are not allowed.
 
Interest is calculated daily and either credited to the account annually on the anniversary date of the deposit or it can be paid into a bank account.  Withdrawals can be made by post but will be subject to a charge.
 
The variable AA Internet Extra savings account now offers 1.60% gross/AER for balances from £1,000 to £1 million.  The minimum opening balance is £1,000 although money can be withdrawn to leave as little as £1 in the account. The account can only be opened in a sole name.
 
The AA Internet Extra account interest rates include a fixed 12 month bonus, after which the variable rate without bonus will apply, currently 0.50% gross/AER. Savers will be notified by letter ahead of the bonus rate ending.
 
The Internet Extra (Issue 12) is completely flexible with no restrictions on the number of deposits or withdrawals that can be made.
 
Says Mark Huggins, director of AA Financial Services: "These changes are great news for savers.  They reflect the improving economy and make both accounts accessible to everyone.
 
"Saving should be an important part of every family's budgeting - both accounts provide the option to earn a decent rate of interest on even small balances."
 
Applications for both accounts should be made online at theAA.com/Savings.