Alliance & Leicester hikes saving rate

Tuesday, 14 October 2008 12:00

An easy-access savings account at Alliance & Leicester has become more attractive following an interest rate increase.

The building society's online tracker savings account now boasts an interest rate of 6.30 per cent and comes with a bonus of 1.30 per cent payable until January 4th 2010.

The move comes following the launch of the Alliance & Leicester eSavers Issue 2 account which has an interest rate of 6.60 per cent gross/AER per annum.

This account is designed for long-term savers and the higher interest will only be earned if customers make fewer withdrawals.

The Online Tracker Savings account, however, is the alternative for customers who need to dip into their savings more regularly.

Hetal Parmar, manager for savings at Alliance and Leicester, said: "Online tracker is ideal for people who need to access their savings on a regular basis. The account allows instant, penalty-free access from any linked current account."

He added: "Not only has the rate been increased to a very competitive 6.30 per cent AER, but savers also have peace of mind that the underlying rate will be at least equal to the Bank of England Base Rate until January 2011."

• Tags:
• products and companies