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Money in a Minute

Money in a Minute

Category: Money

Updated: 22/06/2012
First Published: 22/06/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Welcome to the Money in a Minute, your one-stop-shop for the best new personal finance products on the market.

This week we look at two new savings accounts from BM Savings and AA, and two new mortgages from Leeds Building Society and HSBC.

As usual, products are broken up into technical details and impartial product analysis, so you can be sure the information is 100% reliable.

Savings


BM Savings

  • BM Savings retains a competitive position with its five-year fixed ISA paying 4.05% yearly even with a reduction of 0.30%.
  • A monthly option is available paying 3.98%.
  • Savers can invest a minimum of £500.
  • Further additions permitted whilst issue remains open.
  • Transfers in are accepted but earlier access will be subject to a 365 day interest penalty.
  • The account can be operated via branch by savers aged 16 and over only.

This five-year fixed ISA from BM Savings is the second highest rate for a five-year fixed ISA. Savers looking to invest in this product should be aware that any early withdrawals will result in an interest penalty of 365 days' loss of interest.


AA

  • An increase of 0.05% sees the 2 Year Fixed Rate Bond paying 3.70% remain within the top five of two-year fixed accounts.
  • Savers can invest from of £1 to £5 million with further additions allowed while the issue remains open.
  • Early access is permitted subject to a 180 day loss of interest penalty.
  • The account is available to investors aged 16 and over and can be operated by post.

AA continues to offer a competitive two-year fixed account paying 3.70%, one of the top five paying accounts in this sector. Savers will find the low deposit requirement and appeal of further additions attractive. Customers must be aware that as with many fixed rate accounts, early access will result in a loss of interest, 180 days' loss in this case.

Find the best savings rates for you - Compare savings accounts

Mortgages


Leeds Building Society

  • Leeds Building Society has launched a new market-leading ten-year fixed mortgage deal at 4.58% to 30.9.22.
  • The maximum loan-to-value is 75% and a fee of £999 is payable.
  • The deal also offers flexible features of overpayments of up to 10% of the outstanding balance.

The ten-year fixed rate deal from Leeds Building Society offers a market-leading rate of 4.58% for borrowers with deposits of 25% or over. With the lowest rate on offer when fixing for a decade, the deal will appeal to borrowers who are looking to fix over a long term period.


HSBC

  • HSBC has launched a new discounted variable rate mortgage deal at 2.49% for two years (1.45% discount).
  • Available to all customer types, the maximum loan-to-value is 60% with a maximum borrowing of £500,000.
  • An application fee of £499 is payable.
  • The deal comes with the incentive of free legal fees for remortgage customers.

This latest offering from HSBC provides a competitive discounted variable rate deal for borrowers who can place a 40% deposit. If customers can raise the capital required, they will be able to take advantage of this low rate of 2.49% for two years, the lowest variable rate available over this period with a fee.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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