Banking/Savings Section

The Alliance & Leicester is offering a great deal with its Regular Savings Account which pays 10% interest on monthly deposits of between £10 - £250. But two small catches, firstly hurry up because the savings account offer closes on 30th November 2005, and secondly, you have to open either a Premier or Premier Direct current account (which incidentally are excellent current accounts) to in turn open the savings one.

The Deal In Full

• Open either a Alliance & Leicester Premier or Premier Direct current account, this can be done online, see links below
• These accounts offer a 0% interest overdraft for the first year and then at very competitive rates
• The Premier Direct pays 5% on all cash balances above £2,500, the Premier account only pays 2.5%
• Free Travel Insurance on the Premier Account
• Note, both these accounts are designed to be run primarily over the internet and not via the high street which in our view is no disadvantage (unless of course you don't have internet access!)
• In our opinion Premier Direct is the better account

• Opening either account enables you to open the regular Savings Account
• This pays 10% AER and is fixed for a year, note that the money is effectively locked up and can only be withdrawn if the account is closed (we would assume that all interest is lost in this scenario)
• But for many people this is a positive because it forces money to be saved which cannot be touched for a year
• Maximum savings over the year is £3,000 and interest is credited yearly

Summary

The only bad news is that this account is only available to new clients and if you're already banking with A&L then it's tough luck. However, competition within this sector is really hotting up so keep your eyes open and don't be surprised if some other bank comes up with a similar deal or even tops it.

See Also