AA Savings launches new postal fixed rate account

AA Savings is firmly in the best buy league with the launch of a brand new postal 1 Year Fixed Rate Savings Account paying 3.40% gross p.a./AER. A monthly interest option is also available paying 3.35% gross p.a./3.40 AER.

This new account follows the recent interest rate increase (2.80% gross/AER) on the AA's Internet Extra (issue 4) instant-access account, also placing it amongst best buys.

The 1 Year Fixed Rate Savings Account can be opened with anything from 1 to 5 million (10million for joint accounts). As a 1 year fixed account, money cannot be withdrawn until maturity. To take full advantage of the offer, the initial deposit should be for the full amount being saved.

Interest is calculated daily and credited to the account on the anniversary date of the first deposit, or on the first day of each month for the monthly interest option. The account is operated by post.

Says Mark Huggins, director of AA Savings: "The AA also offers a range of online accounts but I appreciate that some customers prefer to manage their savings by post.

"This is a secure, easy to manage account from one of Britain's most trusted brands and it offers a top interest-paying option."