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Product Focus: Online Accounts

Product Focus: Online Accounts

Category: Savings

Updated: 22/01/2010
First Published: 12/06/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Branches are expensive for banks to run and as a result branch-based accounts tend to pay some of the lowest rates on the market. In comparison, with much lower overheads, online based accounts are cheaper and easier to run and this saving is passed on through higher rates.

Intelligent Finance – iSaver

The Intelligent Finance iSaver is currently paying 2.85 per cent each year or 2.81 per cent for customers looking for monthly interest. The rate is guaranteed to be at least 1.00 per cent above Bank of England Base Rate until 31 December 2009. Savers can invest up to £99 million into the online based accounts and credit balances can be offset against any debit balances. No notice is required for savers to access their funds, but withdrawals must be made via BACS or the CHAPs system.

Principality Building Society – e-Saver Issue 2

The new issue of the e-Saver from Principality Building Society is currently paying 2.85 per cent, including a 1.20 per cent bonus for 12 months. Up to £1 million can be invested in the account, which is open to new customers. No notice is required to access funds, but all money must be transferred to a nominated account.

ING Direct UK – Savings Account

New customers to ING Direct UK can get a rate of 2.72 per cent, including a 2.22 per cent bonus for 12 months. Savers can invest up to £1 million into the account, which can also be operated by telephone as well as online. No notice is required to make a withdrawal, but all money must be transferred to a nominated current account.

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 Any products featured may be withdrawn by their provider or changed at any time.

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