AA offers 4% plus on savings accounts
The AA is offering interest rates of up to 4.5 per cent on its fixed-rate savings accounts.
The financial arm of the motoring organisation is promoting the plans as new research shows almost half of potential car buyers are raiding their savings to buy a vehicle.
The poll of 13,000 car owners found that 47 per cent would rather partly or wholly fund the cost of their new car with their nest egg, rather than take out a loan.
And Mark Huggins, director of savings at the AA, said this was partly the government's car scrappage scheme, which has opened up a new market for people who wouldn't previously buy a new vehicle.
He said: "Families who can avoid using finance to buy into the scheme become real economic winners."
The AA savings range includes a 16-month fixed-rate internet account offering 4.05 per cent interest for savers with a minimum deposit of £500. There is a similar plan available as a telephone account for customers with a minimum of £5,000.
The 4.5 per cent rate is available on the AA's five-year fixed-rate telephone account which requires a £500 deposit to open.
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