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Money Masterclass

Money Masterclass

Category: Money

Updated: 22/09/2011
First Published: 11/03/2011

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 It is now over 6 months old so the content may be out of date.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 Masterclass, your one-stop-shop for the best new personal finance products on the market.

This week we look at two new savings accounts from AA and SAGA, a new mortgage from Woolwich at Barclays, and a structured product from Santander.

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

Savings

AA Internet Access ISA

  • The AA Internet Access ISA rate has increased to 3.35%, including a bonus of 1.65% for 12 months.
  • Investors can make a minimum investment of £500.
  • No advance notice is needed to access funds, although all transactions must be made via a linked account.
  • Transfers in are not accepted.
  • The account is available to savers aged 18 and over and can be operated online only.

Moneyfacts.co.uk analysis

This new online ISA from the AA has stormed to the top of the cash ISA market with a rate of 3.35%. The initial rate includes a large bonus of 1.65% for 12 months, so savers must remember to review their options in around a year's time to avoid reverting to a lower rate. As transfers in are not accepted, this deal may be best suited to investors who have not yet built up a large savings pot.

SAGA Three Year Fixed Rate Savings

  • SAGA has increased the rate on its 3 Year Fixed Rate Savings account, available via post only, to 4.20% and launched an online only version of the account.
  • A monthly interest option is also available at 4.12%.
  • Savers can invest between £1 and £10m and further additions can be made whilst the issue remains open.
  • Early access is allowed subject to penalty, depending on the account's remaining term, as follows:
    • Up to 3 years, 270 days;
    • Up to 2 years, 180 days;
    • Up to 1 year or less, 90 days.
  • The accounts are available to savers aged 50 and over.

Moneyfacts.co.uk analysis

SAGA's latest product review sees a rate increase of 0.35% to its 3 Year Fixed Rate Savings account and the launch of its online cousin. Paying 4.20%, these deals sit amongst the other market leading rates. Both bonds have the flexibility for withdrawals to be made during the term, although this is subject to penalty.

Find the best savings rates for you - Compare savings accounts

Mortgages

Woolwich from Barclays Two Year Fixed Rate Mortgage

  • Woolwich has launched a new fixed rate deal offering 3.99% to 30.4.2013.
  • The maximum loan-to-value is 70% and customers can borrow between £50,000 and £1m.
  • A small arrangement fee of £199 is payable and incentives of a free valuation fee for properties valued up to £2m.
  • Remortgage borrowers can enjoy free legal fees and a £200 rebate.

Moneyfacts.co.uk analysis

This new fixed rate mortgage from Woolwich offers customers with a maximum 30% deposit a competitive rate of 3.99% to 30.4.2013. The deal has a small arrangement fee and a range of incentives are offered to both purchase and remortgage borrowers. Flexible features such as the option to make overpayments and take payment holidays are also offered with this product.

Find the best mortgage rate - Compare best selling mortgages

Investment Life & Pensions

Santander Growth Plan Issue 42

  • Santander has launched its latest Growth Plan Issue 42.
  • This is a structured product requiring a minimum investment of £1,500 for either a three and three quarter, or five and a half year term.
  • On maturity the bond pays 50% of the average growth in the FTSE 100.
  • There is also a guaranteed minimum return of 4% for the shorter term option or 12% for the longer term option.
  • The offer closes on 11.04.2011.

Moneyfacts.co.uk analysis

This latest review from Santander sees the return of the Growth Plan, reduced from four and six year terms respectively. There has also been an increase in the guaranteed minimum returns by 1%. The bonds offer only 50% of the FTSE 100 index growth, but this growth is uncapped. The guaranteed minimum returns, at 4% and 12%, are modest but offer some return should the FTSE 100 fail to perform.

Looking for the right investment? Check out our ISA-Fund Supermarket - Compare Investment Funds

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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