Banking/Savings Section

Corking Savings Rate From Chelsea B.S - 5.4%

July 2005

The Chelsea Building Society is offering one of THE best saving deals around. And not only that, they've got 3 guarantees in place making sure the rate stays top-dollar for at least 2 years. So hats off because many financial institutions have a cynical habit of heavily promoting excellent rates to attract savers, only to drop the rate drastically within 6-9 months.

What's The Deal - Triple Guarantee Notice Account

• £100 minimum balance, £500,000 maximum
• 5.40% gross AER
• Monthly interest option available (note, this may reduce the rate slightly to check further)
• Branch account and postal operated
• Withdrawls - require 90 days notice (otherwise forfeit 90 days of interest) in 1st year, 60 days notice in 2nd year and 30 days notice in 3rd year

The 3 Guarantees

1. From the date of opening the variable interest rate is guaranteed to be at least 0.50% above Base Rate (until 10/1/06)
2. From 11/1/2006 the variable rate is guaranteed to be at least 0.25% above Base Rate (until 11/1/07)
3. From 12/1/2007 the variable rate is guaranteed to be at least the same as Base Rate (until 12/07/07)

Summary

For long term savers who don't mind the 90 days notice (drops to 60 days in year 2 and 30 days in year 3) then it would be a challenge to beat this deal. The only downside that we can see is that it's not internet operated but this is a small price to pay for such generous rates, well done Chelsea!

However, if you still want an excellent rate (5% AER) AND instant access you can't beat ING Direct.

Not only is the interest rate 5% but they don't play tricks by lowering it once you've deposited money. For several years they've had the most consistent savings rate of all of the banks/building societies. Accounts can be opened and operated online and it's pretty slick software. Click Here for more details on ING Direct

Click the link below for more details.