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Product focus: accounts with bonuses

Product focus: accounts with bonuses

Category: Savings

Updated: 30/03/2010
First Published: 30/03/2010

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 It is now over 6 months old so the content may be out of date.

Introductory bonuses are a great way to secure a higher rate of return on savings.

However, the actual bonus takes up a large portion of the overall rate so it is important for savers to remember when their bonus period expiry date is.

This will allow funds to be transferred in time to another account avoiding any nasty surprises.

Here are the current top three online accounts which offer introductory bonuses.

West Bromwich Building Society – Direct Bonus Account 1

This account pays an annual rate of 3.00% including a bonus of 1.00% until 31 January 2011. Savers can invest between £1,000 and £100,000. Must be new money to the institution. No notice is required to access funds. A maximum of three withdrawals by BACS are allowed each year. A rate of 0.05%, or 1.05% if during the bonus period, is paid on the fourth withdrawal until 1 May each year when a new year begins. The account can be operated by savers of all ages by post, telephone and online.

AA – AA Internet Extra Issue 3

This account from the AA pays 2.80% on its anniversary including a 2.30% bonus for twelve months. Investments range from £1 to £1 million. No notice is required to access funds and all withdrawals must be made via a nominated account. The account is only available online to savers aged 18 and over.

Tesco Bank – Internet Saver

The Internet Saver account pays 2.75% including a bonus of 1.50% for twelve months to savers with deposits of between £1 and £99,999. Investments ranging from £100,000 to £1m will receive a rate of 1.25% with no bonus. The bonus is available to new Internet Savers customers only. No notice is required to access funds although all withdrawals must be made via a nominated account. Only one account can be held per person and savers must be aged 18 and over to operate this account.

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 Any products featured may be withdrawn by their provider or changed at any time.