A&L increases interest rate on online tracker savings account

Alliance & Leicester increases the interest rate on its online tracker savings account to 6.30% AER. Hetal Parmar, Manager for Savings at Alliance & Leicester, said: "I am delighted to announce these changes to our Online Tracker account; not only has the rate been increased to a very competitive 6.30% AER, but savers also have peace of mind that the underlying rate will be at least equal to the Bank of England Base Rate until January 2011.

"Online Tracker is ideal for people who need to access their savings on a regular basis, the account allows instant, penalty-free access from any linked current account."

The changes to Online Tracker follow the recent launch of Alliance & Leicester's eSaver Issue 2 at 6.60% gross pa/AER (6.41% gross monthly). eSaver Issue 2 is designed for longer term savings, not for regularly dipping in and out. 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.

Whilst eSaver Issue 2 has a market leading interest rate and is ideal for customers saving a lump sum for the longer term, Online Tracker is more suitable for those savers who want instant access to their savings, without penalty, but still want to earn a very competitive return on their savings. Online Tracker also gives customers the added peace of mind that the underlying rate will track the Bank of England base rate over the longer term.

Alliance & Leicester's Online Tracker account offers:

Interest rate of 6.30% gross pa / AER, including a 1.30% gross bonus until
4 January 2010
The underlying (non-bonus) rate guaranteed to be at least equal to the Bank of England Base Rate until 31 January 2011
Minimum balance £1, maximum £2,000,000
Open online and manage via Internet Banking using any linked, UK current account
No notice or penalties for withdrawals
Interest paid annually on 1 October
Only one account per person
Available to UK residents aged 18 and over.

For further information on Alliance & Leicester's Online Tracker account, customers should go online at alliance-leicester.co.uk