MoneyExpert.com: Abbey’s new 10% savings account

Sean Gardner, Chief Executive of MoneyExpert.com, said: “Abbey customers who are keen to save regularly could be forgiven for thinking Christmas has come early with the launch of the firm’s new Super Monthly Saver paying 10 per cent for one year.

“However they’d be wrong to think they’re too special – Alliance & Leicester, Barclays and Halifax all have similar deals available to regular savers who are existing customers.

“Banks know customers are aware that switching is easier and quicker than ever before, so some are working hard to reward loyalty. The great rate is to be welcomed but Abbey customers shouldn’t feel compelled to stick around after the year has expired if they have reasons to move elsewhere. There are no golden handcuffs so they shouldn’t feel tied to Abbey if they take them up on the offer.

“And there are conditions. You can only pay between £20 and £250 a month and if you pay in less than £20 in a month, you’ll be penalised. Plus switching your current account from Abbey will mean you no longer qualify for the deal.

“That said Abbey’s fixed rate Monthly Saver is still competitive at 7.25 per cent – so there’s a handy safety net for savers who feel compelled to move their other banking requirements elsewhere.

“Abbey seems to have come up with a formula to attract switchers and savers, new customers and existing customers. Don’t dismay if you’re not with Abbey, though. Your bank may well offer an even better deal – they’re just not making a song and dance about it. The only way to be sure, is to check online, or pick up the phone and ask.”