The Principality Building Society's e-Saver Issue 2 now offers an instant-access return of 2.85% AER on balances from as little as £1
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Principality Building Society - e-Saver Issue 5
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What's the deal?
The Principality Building Society has boosted the rate paid on their e-Saver Issue 2 savings accounts to 2.85% gross/AER variable. This includes a 1.20% fixed bonus payable for 12 months from account opening.
The e-Saver Issue 2 account is instant access, available exclusively online and places no restrictions or penalties on withdrawals.
The minimum account balance is £1, the maximum is £1million and interest is paid annually.
What makes it great?
The 2.85% gross/AER now paid on the Principality Building Society's e-Saver Issue 2 is the market leading rate for non-tied instant access savings under £10,000.
With a 1.20% introductory bonus paid above the standard account rate (currently 1.65% AER) for the first 12 months you have the added reassurance that your money will be earning a decent return during this time. What's more, as the account accepts balances from as little as £1 it's accessible to everyone who wants to save and, with absolutely no penalties on withdrawals, you're free to access your money whenever you need to.
Who would it suit?
This account is best suited to individuals who are looking for a decent return on savings under £10,000 (better returns are available for balances greater than this) without tying up their money for any length of time.
Additionally, as the e-Saver Issue 2 can only be accessed and operated online this account is only going to be suited to those who are happy to forgo branch access.
It's also worth noting that this account is only available to UK residents over the age of 16 and cannot be opened in joint names or operated on a trustee basis.
What's the catch?
While the introductory bonus does provide you with some reassurance that your money will earn a decent return for the first year, after this time the interest paid will revert to the account's standard rate. This currently sits at 1.65% gross/AER; however, as the rate is variable you have no guarantee as to whether the account will still be as competitive 12 months down the line. For this reason it can be a good idea to review your savings after the introductory offer expires.
What's the alternative?
Ulster Bank's e-Savings Plus offers a return of 3.75% AER variable - including a 0.5% AER 12 month bonus - making it the true market leading instant access savings account. However, as it is only available to those with more than £10,000 to invest it's not going to be a suitable option for all savers.
Nottingham Building Society's First Home Saver also pays a more competitive 3.25% AER. However, it is a branch based account only available to first time buyers.
The isaver account offered by Intelligent Finance is another instant access account that offers a return of 2.85% gross/AER on balances from £1 making it equally as competitive as the Principality Building Society's offering. However, the two acccounts differ in terms of the rate reassurance they provide.
While the Principality Building Society's account pays an introductory bonus of 1.20% AER for 12 months, Intelligent Finance offer a guarantee that the rate paid on the isaver account will be at least 1% above the Bank of England base rate until 31st December, 2009.
The way things stand with interest rates at the moment Principality's guarantee comes out as the more preferable offering, not least because their bonus applies for a longer period than the rate guarantee available on the isaver.
If you're happy to tie your money up for a while it's worth looking at the regular saver and fixed rate offerings currently available. As many offer better returns than those available with instant access savings accounts they can be an option worth considering.
Similarly, as the interest paid on this account is taxable - as is the case with all standard savings accounts - an instant access cash ISA may offer you a better return on your money. However, this will only be the case if you haven't yet contributed to an ISA during the 2009/2010 tax year.
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.
