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AA drives fixed rate savers to distraction

AA drives fixed rate savers to distraction

Category: Savings

Updated: 09/03/2011
First Published: 09/03/2011

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 It is now over 6 months old so the content may be out of date.

AA has driven savers to distraction with its new five year fixed rate bonds.

Now paying 5.00%, the Five Year Fixed Rate Savings account and its internet counterpart are market-leading bonds in the long term fixed rate market.

Both bonds have the added flexibility of allowing earlier access to funds, but the penalties are hefty, particularly in the early years.

Money can be accessed in year one on 365 days' loss of interest, in year two on the loss of 320 days, in year three on the loss of 270 days, year four 180 days, and year five 90 days.

The monthly options also pay a competitive rate of 4.89% for those looking to supplement their income.

Four out of five Moneyfacts stars are richly deserved.

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