Product Focus: Bonus Accounts - Savings - News - Moneyfacts


Product Focus: Bonus Accounts

Product Focus: Bonus Accounts

Category: Savings

Updated: 04/08/2009
First Published: 21/07/2009

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 It is now over 6 months old so the content may be out of date.

In order to offer attractive rates in the current low interest rate environment, many providers are adding substantial bonuses to their accounts. While these can help increase the rate in the short term, if savers don't review the rate after the bonus period ends, they may see a large drop in the interest they receive.

Coventry Building Society – 1st Class Postal

Coventry Building Society is offering the highest rate at present on an easy access account paying 3.30 per cent on its 1st Class Postal account, which includes a 1.30 per cent bonus for 12 months. A monthly interest option is available for those requiring a more regular income and savers can invest between £1,000 and £250,000. Savers can make four penalty free withdrawals per annum, with further withdrawals that year subject to 50 days' loss of interest.

Birmingham Midshires – Telephone Extra

The Telephone Extra account from Birmingham Midshires currently pays 3.15 per cent, including a 2.65 per cent bonus for 12 months. Savers can invest up to £2 million into the account, with a monthly interest option available. No notice is required to make a withdrawal, but all transactions must be made via a nominated account.

Citibank – Flexible Saver Issue 5

Citibank is currently paying 3.06 per cent on its Flexible Saver account, which includes a 2.06 per cent bonus for 12 months. The account is open to new customers to Citibank and savers can invest up to £1 million into the account, which can be operated online, in branch or by telephone. A cash card is available with the account, allowing savers instant access to their money.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.

Less than half of savings accounts beat inflation

Official figures show that inflation jumped up during September, with CPI rising to 1%. Not only does this mean that consumers may begin to feel the impact on their wallets, but there are now far fewer savings accounts that will beat inflation.

Number of savings accounts falls to record low

As if the continued drop in savings rates wasn’t bad enough, our latest research reveals another blow to already hard-pressed savers, with the number of accounts available having fallen to a record low.