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Alliance & Leicester offers online savers 3.15% interest

Friday, 3 July 2009 Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.uk

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The new Online Saver 5 from Alliance & Leicester pays 3.15% interest on balances from £1, and is available now.

Alliance & Leicester (www.alliance-leicester.co.uk) today launched the Online Saver 5, which pays 3.15% interest.

“The rate of 3.15% makes this account the number one best buy”

This account is available to new and existing customers and the high rate of interest is payable on balances from just £1. The account is accessible online, and savers can make as many withdrawals as they like without facing any penalties.

The bonus rate will be paid until August 2010, when rates will revert to the standard tiered rates on the account – currently between 0.50% and 1.50%.

Reza Attar-Zadeh, director of savings and investments at Alliance & Leicester, said: “We believe this new Online Saver will prove extremely popular for any customer looking for a great rate with penalty free access to their money.”

Chris Eagle, commercial manager at CreditChoices.co.uk said: “We have seen several savings providers boost the rates on accounts this week – including Sainsbury’s and ING Direct - but this offer trumps them all.

“The rate of 3.15% makes this account the number one best buy in the mainstream savings account market.

“I imagine this account will attract a rush of applicants, so if you are interested, snap it up while you can!”

More information on the Online Saver 5 account

Currently, Alliance & Leicester operates under its own banking licence which means your savings with it up to £50,000 are protected by the Financial Services Compensation Scheme.

However, when Alliance & Leicester becomes Santander next summer it is not yet clear whether or not it will be operated under the Santander banking licence – if it is this would mean you will only be protected for £50,000 across all the previous brands, including Abbey and Bradford & Bingley.

Eagle added: “If you currently have savings balances that total more than £50,000 across Santander’s brands, now may be the time to review your accounts.”