Alliance & Leicester launches eSaver Issue 2

Alliance & Leicester is to launch eSaver Issue 2, a market-leading internet only savings account paying 6.60% gross pa/AER (6.41% gross monthly) and available from Thursday 25 September 2008.

The account, which is for balances of between £1 and £500,000, pays interest monthly and is ideal for customers saving a lump sum for the longer term, and for those who want a monthly income from their savings.

The account is designed for longer term savings, not for regularly dipping in. In return for a higher interest rate, if a withdrawal is made in any month other than July, no interest is earned on the account balance for that month. Savers can choose to have the monthly interest paid to a nominated current account, without any loss of interest, this is not treated as a withdrawal.

Hetal Parmar, Manager for Savings at Alliance & Leicester comments: "This new account offers a market leading return and, with the cost of living on the increase, it's great to know your money can now work even harder. We have also guaranteed to keep the rate at least half a percent above the Bank of England Base Rate until 28 February 2010, to encourage people to save for the long term.

"Whilst the account is designed for long term savings, it does provide the comfort of knowing you can access your money if you really need it, without notice. Many existing customers also use the account to supplement their monthly income, by having the interest paid to another account."

This new internet only account is available online from 25 September 2008, at alliance-leicester.co.uk.

Hetal Parmar concludes: "The new eSaver account is ideal for those wanting the discipline to save up for bigger things, for example, a deposit for a house, a new car or even towards their retirement.

"People who need to access their savings on a regular basis should choose one of our other savings accounts, such as PlusSaver, paying 5.25% gross pa/AER, which allows instant and unlimited access from the linked Premier current account.

"Having two accounts enables you to get the best of both worlds. You can maximise the interest while you build up a bigger nest egg in eSaver, whilst being able to dip into PlusSaver whenever you want without losing any interest."

Alliance & Leicester's eSaver account offers:

Variable interest rate of 6.60% gross pa/AER (6.41% gross monthly)

AER guaranteed to be at least 0.50% above the Bank of England Base Rate, until 28 February 2010

Minimum balance: £1, maximum balance: £500,000

Access via internet only

Deposits/withdrawals are made from/to a linked current account via the internet, this can be an Alliance & Leicester account or with another provider

No interest is earned on the account balance during any calendar month in which a withdrawal is made, with the exception of July, when withdrawals can be made and do not affect the rate

Interest is paid monthly, either into the eSaver account or the linked current account.