Alliance and Leicester Increases the Interest Rate on its Online Tracker Savings Account to 6(point)30 Percent AER
Released on: October 23, 2008, 1:59 pm
Press Release Author: Alliance and Leicester
Industry: Small Business
Press Release Summary: Alliance & Leicester is increasing the interest rate on its Online Tracker accounts to 6.30% gross pa/AER on all balances from GBP1*.
Press Release Body: October 2008 - Alliance & Leicester is increasing the interest rate on its Online Tracker savings accounts to 6.30% gross pa/AER on all balances from GBP1*. The new rate is effective from Monday 13 October and will apply to all existing Online Tracker accounts, as well as to new ones. The rate includes a bonus of 1.30% AER, payable until 4 January 2010. The underlying rate is guaranteed to be at least equal to the Bank of England Base Rate until 31 January 2011.
Hetal Parmar, Manager for Savings at Alliance & Leicester, said: "I am delighted to announce these changes to our Online Tracker account; not only has the rate been increased to a very competitive 6.30% 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.
"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."
The changes to Online Tracker follow the recent launch of Alliance & Leicester's eSaver Issue 2 at 6.60% gross pa/AER (6.41% gross monthly). eSaver Issue 2 is designed for longer term savings, not for regularly dipping in and out. In return for a higher interest rate, if a withdrawal is made in any month other than July, no interest is earned on the account balance for that month.
Whilst eSaver Issue 2 has a market leading interest rate and is ideal for customers saving a lump sum for the longer term, Online Tracker is more suitable for those savers who want instant access to their savings, without penalty, but still want to earn a very competitive return on their savings. Online Tracker also gives customers the added peace of mind that the underlying rate will track the Bank of England base rate over the longer term.
1) Interest rate of 6.30% gross pa / AER, including a 1.30% gross bonus until 4 January 2010 2) The underlying (non-bonus) rate guaranteed to be at least equal to the Bank of England Base Rate until 31 January 2011 3) Minimum balance GBP1, maximum GBP2,000,000 4) Open online and manage via Internet Banking using any linked, UK current account 5) No notice or penalties for withdrawals 6) Interest paid annually on 1 October 7) Only one account per person 8) Available to UK residents aged 18 and over.
*Online Tracker used to pay tiered interest rates of 4.25% (for balances below GBP100,000) and 4.75% (for balances above GBP100,000). From Monday 13 October, the account will offer one rate of 6.30%, payable on all balances between GBP1 and GBP2,000,000.
Alliance & Leicester is now part of the Santander Group. Santander (SAN.MC, STD.N) is the one of the world's largest banks. Founded in 1857, Santander employs 140,000 staff serving 80 million customers through 13,000 branches in 40 countries. It is the largest financial group in Spain and Latin America, and is the fifth largest bank in the United Kingdom, through its Abbey, Bradford & Bingley savings and Alliance & Leicester businesses, and is the third largest banking group in Portugal. Through Santander Consumer Finance, it also operates in 12 European countries and the United States. In 2007, Santander registered EUR9,060 million in net attributable profits, an increase of 19% from the previous year.
The Financial Services Authority has announced that the level of savings in British bank accounts guaranteed by the Financial Services Compensation Scheme (FSCS) will increase from GBP35,000 to GBP50,000 with effect from 7 October 2008.
Alliance & Leicester customers will continue to be protected separately to any other bank, including Abbey and Bradford & Bingley.