THIS RATE IS NO LONGER AVAILABLE - Saga offers more flexibility to savers with the new best buy launch

Wednesday 7 April 2010

THIS RATE IS NO LONGER AVAILABLE - Saga offers more flexibility to savers with the new best buy launch

  • New Saga 5 Year Trigger Market Linked Deposit – AER 6.25%
  • New Saga ISA Saver Postal – AER 2.60%

Saga Personal Finance is proud to announce it has topped the £4 billion mark in savings deposits, double the total deposits of some well-known building societies. To meet the needs of its growing customer base, Saga is also this week expanding its range of saving accounts by launching the innovative Saga 5 Year Trigger Market Linked Deposit, linked to the performance of the FTSE 100 Index with an AER of 6.25%*, and the Saga ISA Saver Postal with an AER of 2.6% to UK residents aged 50 and over.

Saga 5 Year Trigger Market Linked Deposit (plus ISA version)

The account offers a highly competitive AER of 6.25%, providing the average of the FTSE 100 Index does not fall between the initial and maturity index readings over the term of the account. The FTSE 100 does not have to go up in order for customers to earn 6.25% return on their money – it just must not go down during the 5 year term.

If the FTSE 100 Index does fall customers will not receive any interest, however the original capital will be returned at maturity.*** Customers will also receive the Bank of England Bank Rate from the date funds are deposited****, until the issue date of the account on 19 July 2010.

A minimum deposit of £500 is required and maximum deposit of £1m per investor (£2m for joint accounts) or £5,100 for the ISA version. Customers may withdraw funds or close the account before the end of the full term. A charge of 1.5% will apply on the amount withdrawn. Any remaining funds have the potential to earn 6.25% AER.

Saga ISA Saver Postal

The easy-access postal account offers an attractive AER of 2.60%. The interest rate is variable and includes an 18-month bonus of 1.00% gross on accounts where interest is paid annually, and a 0.98% a month bonus on accounts that pay interest monthly.

Following the Saga tradition of providing value for its loyal savers the account comes with a guarantee that the interest rate will never be more than 2% below the Bank of England Bank Rate with a minimum rate of 0.25% AER and a maximum cap of 8%.

The minimum amount that can be invested is £500 and the maximum is £5,100 in the current tax year. Customers are able to transfer any existing cash ISAs they have held in previous years.

The account is instant access and there are no penalties for withdrawing funds - providing peace of mind that savings are close at hand, should they be needed. Interest will be paid after 12 months, again after 18 months and annually or monthly thereafter.

Andrew Goodsell, Executive Chairman, Saga Group commented: “To reach £4bn savings deposits – double that of some very respected building societies - is testament to the service and competitive deals that Saga strives to offer its customers. We understand that the over 50s need their savings to work hard for them, and that the needs of individuals vary, so choice and flexibility are key. These two new accounts complement our existing high-interest savings suite by widening the options to suit these needs.”

For further information about the Saga 5 Year Trigger Market Linked Deposit, Saga ISA Saver Postal or any of Saga’s other savings products, please call 0845 850 0664

Editorial Notes:

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added once a year.

** Each issue of this type of account has a limited amount of money that can be deposited in it. If the limit is reached, Saga will close the issue.

*** This is because money invested is kept in a deposit account and linked to the FTSE 100 Index, rather than deposited in the companies listed in it.

**** Additional deposits can be made until 30 June 2010, as long as the issue isn’t fully subscribed.

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

For more information please contact the Saga Press Office on 01303 771529.

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