The ING Direct Savings Account pays 2.75% AER, can be opened with as little as £1 and offers rate-reassurance with a 2.22% first year bonus.
What's the deal?
The ING Direct Savings Account pays 2.75% AER on savings from as little as £1.
It is completely instant access as there are no penalties or restrictions on withdrawals and you have the added reassurance of a 12 month bonus of 2.22% gross p.a.
You can manage the account online, via telephone or by post, are able to hold up to 10 separate accounts and permitted to invest up to £1,000,000 in each.
What makes it great?
Aside from being the best rate available on a non-tied, accessible savings account (the 'market leading' instant access account requires a balance of at least £10,000), the ING Direct Savings Account provides you with a guaranteed minimum return on your savings for the next 12 months.
The 2.22% gross p.a. bonus means that should savings rates fall even further you can remain confident that you will still be getting a competitive return on your money for that time. However, despite the fixed-rate reassurance, you are still able to access your money whenever you need to without worrying about interest penalties and the like.
Who would it suit?
The ING Direct Savings Account is most suited to individuals who are looking for a part-guaranteed return on a flexible, instant access account.
It is worth bearing in mind that better returns are available on a number of fixed term and regular saver accounts so these may be worth considering if you're happy to tie your money up for a while.
Similarly, as the interest paid on this account is subject to tax (as are all standard savings accounts), if you're a tax payer a cash ISA may offer you a better return.
What's the catch?
You will need to bear in mind that after 12 months the rate of interest paid on the account will drop considerably as you will no longer be eligible for the introductory bonus. The variable rate (applicable after the bonus ends) paid on the ING Direct Savings Account is currently 0.5% AER so this represents a rather significant step down in terms of the potential return.
That said, as it's an instant access account there's nothing to stop you reviewing its suitability after the first 12 months and, as there is no penalty for withdrawals, moving your money should you find a more competitive deal elsewhere.
What's the alternative?
Ulster Bank (NI) offer the true market leading rate available on an instant access account with their eSavings Plus. Currently paying a variable 3.75% AER, this includes a 0.5% bonus for 12 months. However, this account does have a minimum investment of £10,000 meaning that it's not suitable for everyone.
The Nottingham Building Society First Home Saver account also pays a more-competitive 3.25% AER. However, this is a branch-based account that is only available to first time buyers.
Akbank N.V also pay 2.75% AER on their AK Savings Account, however this return is variable and doesn't come with the reassurance of any introductory bonuses.
Capital One's Flexi-Saver Issue 1 pays a still-competitive 2.65% and comes with a 1% bonus payable for the first 12 months. While it is accessible online, over the phone and by post, it is only available to new customers who have more than £500 to invest.
Egg, Alliance & Leicester, Abbey and Cahoot all pay 2.5% AER on balances from £1 with their online, instant access accounts so these may also be worth considering as alternatives.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
