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Product focus: Introductory bonus accounts

Product focus: Introductory bonus accounts

Category: Savings

Updated: 03/08/2010
First Published: 03/08/2010

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 It is now over 6 months old so the content may be out of date.

Introductory bonuses are used by many providers to boost a product's initial rate.

Savers who are tempted by these products should remember, however, that bonuses account for a large part of the overall rate and run for a limited period, typically twelve months.

To avoid the disappointment of reverting to a lower rate, contact your provider in the weeks prior to the expiry date to review your account options and to leave enough time for transferring funds if need be.

Here is a selection of the current best online accounts which include introductory bonuses.

AA – AA Internet Extra Issue 3

This account pays 2.80% on its anniversary including a bonus of 2.30% for twelve months. Savers can invest between £1 and £1 million. No advance notice is required to access funds, although all withdrawals must be made via a nominated account. The account is available to savers aged 18 and over and can be operated online only.

SAGA – SAGA Internet Saver

SAGA's Internet Saver account for customers aged 50 and over pays 2.75% on its anniversary, including a 1.00% bonus for twelve months. After twelve months the gross rate has an underlying guarantee to be no lower than 2.00% below bank base rate. A monthly interest option is also available at 2.72% with the same bonus. Savers can invest between £1 and £1 million. No notice is required to access funds, although all withdrawals must be made via a nominated account. The account can be operated online only.

Santander – eSaver Issue 2

This account from Santander pays a rate of 2.75% including a bonus of 2.25% variable for twelve months. A monthly interest option is available at 2.72% including a 2.23% bonus variable for twelve months. Investments range between £1 and £2 million. Funds can be accessed immediately, although there is a maximum daily cash machine withdrawal amount of £300. The account is available to savers aged 16 and over and can be operated online only.


Find the best savings accounts for you - compare savings accounts with bonuses

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 Any products featured may be withdrawn by their provider or changed at any time.

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