Rates guaranteed to move in line with any change in the base rate within 2 business days
Saga Personal Finance has today announced the launch of an on-line savings account currently paying a rate of 6.20% AER, making it one of the most competitive deals on the market. Unlike many other savings accounts, the Saga Online Savings Account guarantees to pass on any increases in the base rate within just 2 business days.
The Saga Online Savings Account rates are transparent and are guaranteed to be 0.45% above base rate for the first year. In year two, it guarantees to equal the base rate, and from the third year onwards it will offer 0.25% below for the lifetime of the account.
While there are numerous "bonus accounts" on the market offering guarantees, the current rate being paid is often considerably higher than the provider's guarantee**, so consumers could see their rates drop even when there is no movement in the base rate. The Saga Online Savings Account has been designed to offer an excellent rate for customers' hard–earned savings, whilst being completely transparent on how and when their interest rate will change.
Andrew Goodsell, Chief Executive, Saga Group Ltd commented:
"Today's interest rates are fantastic news for savers, however people are still losing out by allowing their money to sit in accounts paying derisory rates. Our new account offers a very competitive rate and has no nasty catches or small print to confuse savers."
For further information about the Saga On-line Savings Account please visit saga.co.uk/onlinesavings.
Notes to Editors-
Full product details
* The Saga Online Savings Account guarantees to pay customers aged 50 and over the following interest rates for the life of their account:
o – Year 1– BBR 45bps (currently 6.20% AER)
o – Year 2– BBR (currently 5.75% AER)
o – Year 3 and beyond– BBR -25% (currently 5.50% AER)
* Any change to the Base Rate (BBR) by the Bank of England will be passed on to Saga Online Savings Customers in just 48 hours.
* Customers can open as many Saga Online Savings Accounts as they wish, which can be especially useful when saving for several purposes
* Minimum investment a3;1 and maximum a3;5 million
* Sole accounts only – This is an instant access account and does not require any notice for withdrawals
* The interest can be paid monthly or yearly. The gross rate if a customer chooses the monthly option is 6.03% for year 1, 5.60% for year 2, and 5.37% for year 3 (all rates are based on the BBR at 5.75%).
For further press information please contact the Saga Press Office on: 01303 771529.