Saga introduce a new fixed rate account to reward all savers

Monday 30 September 2013

• New 3 year fixed rate savings account offers an interest rate of 2.55% AER* on balances of £1 or more • This postal account is available from 30th September

Saga introduce a new fixed rate account to reward all savers

Saga Savings has launched a new three year fixed rate savings account, rewarding savers with balances of £1 or more with an attractive AER of 2.55%. The new account is available from 30th September and customers can either apply online or by telephone.

This new account is available to all UK residents aged 50 or over. And savers can choose to have their interest paid monthly or annually.

Full rate details are in the table below:

   
 Annual Interest
 


Monthly Interest

 
Term
Minimum Balance
Gross*/AER**
%

Net***
%

Gross*/AER**
Net***
%

3 Year
£1
2.55
2.04
2.52
 2.02

Roger Ramsden, chief executive, Saga Services, commented: “We’ve found that two fifths of over 50s use their savings to help fund their retirement, so it’s vital that they are making their money work as hard as possible. This is why we have introduced this savings account so that everyone can benefit from our rates, regardless of how much they have in their savings.”
 

ENDS


Notes to Editors
•    The new three year fixed rate savings account is postal account
•    *Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.
•    **AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
•    ***NET rate is the contractual rate of interest payable after the deduction of income tax at the rate specified by law (currently 20%). If we deduct more tax than you have to pay this can be reclaimed from HM Revenue and Customs


Saga Savings
The deposit-taker for Saga Savings Accounts is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered on the FSA Register and its number is 169628. Registered office: The Mound, Edinburgh, EH1 1YZ (Registered in Scotland No. SC327000).

The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

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