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Product focus: Bonus rate accounts

Product focus: Bonus rate accounts

Category: Savings

Updated: 28/01/2010
First Published: 14/10/2009

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 It is now over 6 months old so the content may be out of date.

Banks and building societies often add bonuses to their rates to attract customers. Bonuses help to boost the initial rate, although they only last for a set period, usually one year. It is important that savers keep an eye on how long the bonus period lasts, otherwise they could find themselves losing out when it expires.

West Bromwich Building Society – Branch Bonus Account

This account pays a variable rate of 3.75pc including a bonus of 1.00pc until 31st August 2010. A monthly interest option is available at 3.69pc with a bonus of 0.97pc until 31st August 2010. Investments range from £100 to £500,000. Savers can access cash with no notice, although only two withdrawals are allowed a year. If a third withdrawal is made, 1.05pc is paid until 31st August 2010, then 0.05pc until the following April when the rate reverts to the headline rate. The account can be operated in branch with a passbook and there is no age restriction for savers.

Citibank – Flexible Saver Issue 6

Citibank's Flexible Saver account pays a variable rate of 3.25pc with a bonus of 2.25pc for 12 months. Interest is paid monthly on the date the account was opened. Savers can invest between £1 and £1m and further additions are allowed. Funds can be accessed instantly without penalties. The account can be operated in branch, by telephone and online by savers aged 18 and over.

Bradford & Bingley – Notice Saver Online

This deal pays a variable rate of 3.30pc including a bonus of 2.80pc for 12 months. A monthly interest option is also available with a lower rate of 3.25pc with a bonus of 2.75pc for 12 months. Investments range from £1,000 to £2m. Savers must give 60 days' notice to access funds. Early access is allowed, although it is subject to 60 days' loss of interest. Withdrawals must be made via a nominated account by BACS payment, however the initial deposit has to be by cheque. The account can be operated online only by savers aged 16 and over.

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 Any products featured may be withdrawn by their provider or changed at any time.

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