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Product focus: Internet savings accounts

Product focus: Internet savings accounts

Category: Savings

Updated: 22/06/2010
First Published: 22/06/2010

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 It is now over 6 months old so the content may be out of date.

Nearly three-fifths of savings accounts on the market pay no more than 0.50pc, with the vast majority of these poorly paying accounts being branch based. If savers opt for an online operated internet savings account they are more likely to achieve a competitive rate of return as a result of the cost savings being passed on through higher savings rates. Here is a selection of the best internet savings accounts currently on offer:

Alliance & Leicester – Online Saver Issue 7

The Online Saver account pays 2.81pc, including a 2.31pc bonus for 12 months. Savers can invest up to £2m into the online operated account. No notice is required to make a withdrawal, but all transactions must be made via a nominated account.

Egg – Egg Savings Account Issue 2

New customers to Egg are being offered a rate of 2.80pc, including a 2.30pc bonus for 12 months. Up to £1m can be invested into the online operated account. No notice is required to access funds, but all transactions must be made by BACS or CHAPS to a nominated account.

Nationwide Building Society – e-ISA

The highest rate on the market for ISA savers looking to transfer an existing balance, whilst maintaining access to their money, is being offered by Nationwide Building Society. Its e-ISA is paying 2.75pc, including a 1.00pc bonus until 30 June 2011. Savers can invest from £1 into the account, with no notice required to make a withdrawal.

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.

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