Product focus: Monthly interest online accounts

Category: Savings
Date: 7/14/2010

When searching the market for the best savings accounts, it is always worth checking the terms and conditions attached to them. Some of the best savings accounts limit the number of withdrawals that can be made within a year. Making more withdrawals than the account permits can result in you receiving a lower rate of return. Here is a selection of the best monthly interest online accounts currently available:

SAGA – SAGA Internet Saver

This savings account, for savers aged 50 and over, pays a rate of 2.72pc, including a 1.00pc bonus for twelve months. Investments of between £1 and £1m are allowed. No notice is required to access funds, although all withdrawals must be made via a nominated account. The account can be operated online only.

ING Direct (UK) – Savings Account

ING Direct's Savings Account pays 2.72pc, including a 2.22pc bonus for twelve months, for new savings account customers. The gross rate is guaranteed to be fixed at 2.72pc for twelve months, while savers can invest between £1 and £1m. No notice is needed to access funds but all withdrawals must be made via a nominated account. The account is available to savers aged 18 and over and can be operated online and by telephone.

Sainsbury's Finance – Easy Saver

The rates of return and investment amounts for this account are determined by how many withdrawals the saver makes in a year. For five withdrawals or less, a rate of 2.67pc is paid, including a 2.17pc bonus for twelve months, while investments can range between £1 and £100,000. Savers who make six or more withdrawals per year will receive a lower return of 0.50pc with no bonus. While the minimum investment amount remains at £1, the maximum deposit is £2m. No 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 and by telephone.

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