AA savings launches internet account

AA Savings has launched issue three of its online easy-access 12-month bonus account, offering a best-buy 5.61 per cent gross/AER interest rate.

This compares with the AA’s successful 5.60 per cent gross/AER Phone & Save, one of the leading telephone savings accounts.

Interest is calculated daily and paid monthly into the account. Minimum opening balance is £1 and the maximum is £5 million. Unlimited deposits and withdrawals can be made.

The Internet Savings Account offers exceptional security with full online functionality, in most cases requiring no signature and no cheque for the first deposit. Money is transferred by BACS and customers can undertake and track all their transactions online. From first enquiry, the AA aims to have new accounts fully operating in 10 working days.

“The internet is an increasingly trusted avenue for making major financial transactions and this account features market-leading security as well as being exceptionally easy to open,” says Lloyd East, director of AA personal finance. “It offers a great rate whether you’re starting a savings account with a fiver or £50,000.”

Lloyd East adds: “Despite the range of high interest-paying accounts now available, most people still look to high-street banks as their first choice for savings – yet in many cases, the interest they earn is so poor they actually lose money. This is despite AA research which shows that two-thirds of savers say they would move if they thought they were getting a poor deal.”