AA drives fixed rate savers to distraction - Savings - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

AA drives fixed rate savers to distraction

AA drives fixed rate savers to distraction

Category: Savings

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

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 It is now over 6 months old so the content may be out of date.

AA has driven savers to distraction with its new five year fixed rate bonds.

Now paying 5.00%, the Five Year Fixed Rate Savings account and its internet counterpart are market-leading bonds in the long term fixed rate market.

Both bonds have the added flexibility of allowing earlier access to funds, but the penalties are hefty, particularly in the early years.

Money can be accessed in year one on 365 days' loss of interest, in year two on the loss of 320 days, in year three on the loss of 270 days, year four 180 days, and year five 90 days.

The monthly options also pay a competitive rate of 4.89% for those looking to supplement their income.

Four out of five Moneyfacts stars are richly deserved.

Looking for a cash isa - Compare cash isa rates and best isa rates for transfers

Request a FREE ISA Savings brochure now

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.