Scarborough increases interest rate on 'Direct Extra'

Scarborough Building Society is now offering customers even better value on their savings by raising the interest rate on its Direct Extra account to 6.46% (variable) for the first year.

With effect from 27 August, it now offers 6.46% (gross per annum, AER, variable 6.26% for monthly interest), until 30 September 2009. It is guaranteed to pay at least 5.81% (5.61% for monthly interest) until that date.

In year two, until 30 September 2010, the rate is guaranteed to stay 0.50% (0.30% for monthly interest) above the Bank of England Base Rate, currently 5.00%.

In year 3, the interest rate becomes completely variable and is no longer linked to the Base Rate.

Direct Extra has already proved popular, with its simple, self-service opening procedure and easy access, coupled with assured returns on savings for the next two years.

Customers can open a Direct Extra account by downloading an application form from the Society's website and posting it in.

Further additions can be made by personal cheque and withdrawals can be made at any time without notice or loss of interest, subject to a minimum withdrawal limit.

Like other, previous self service products offered by Scarborough, Direct Extra is simple and rewarding for customers, allowing Scarborough to offer some of the most competitive products on the market by cutting down on administration costs.

Clare Garrick, Savings Product Manager for Scarborough, said: ‘We are delighted to maintain our reputation for long term good value savings with this easy access self-service account

‘Its flexibility and guarantees has already made Direct Extra a popular product, and we believe that by increasing the already attractive rate even further we can offer customers even better value for their savings.

‘Given the ongoing uncertainty regarding interest rate trends, Direct Extra offers customers the peace of mind of knowing what their returns will be over the next 12 months, coupled with access to their savings should they need it.'

New and existing customers investing new money with the Society are eligible to open a Direct Extra account. The minimum opening deposit is £5,000 and the maximum is £750,000.

Withdrawals are permitted at any time, without notice or penalty, subject to a minimum withdrawal amount of £1,000. The account balance must remain at £5,000 at all times for the terms and conditions to apply.

For further information about Direct Extra and other Scarborough products, and to download an application form, customers should log on to the Society's website at scarboroughbs.co.uk