The 3.38% Branch Bonus Account 2 from West Bromwich Building Society offers the best rate available on an account that gives you instant access to your money.
What's the deal?
The Branch Bonus Account 2 from West Bromwich Building Society pays interest on account balances at a rate of 3.38% AER. This includes a variable introductory bonus of 0.60% that's payable until 31st October, 2010.
Additionally, the account must be opened with a minimum deposit of £100, accepts balances up to £100,000 and gives you the option to receive interest monthly or annually. However, it can only be opened and operated in-branch.
The account is limited issue so it's worth applying sooner rather than later if you think the account is right for you.
What makes it great?
The 3.38% AER paid on this account represents the best rate currently available on an account that offers instant access to your savings. This means you can enjoy a decent return on your money while still having access to your funds if and when you need them.
3.38% AER is also relatively competitive compared to some of the shorter term fixed-rate accounts around at the moment, so this account allows you to enjoy a decent rate without having to lock your money away.
What’s more, the account is open to both new and existing customers (though money saved in the account must be transferred from an external account rather than one already held with West Bromwich BS).
Who would it suit?
The account is available to both new and existing customers, as long as money transferred into the account is ‘new money’ (from an external account). There’s also no minimum age on the account so anyone can open it providing they can deposit the initial £100.
What's the catch?
Though this account does give you instant access to your savings, there are a couple of restrictions to be aware of.
First, the account only permits 2 penalty-free withdrawals per account year (1st April to 31st March); if you withdraw more than twice, your rate will drop to just 0.65% APR (including the 0.60% bonus still applicable until October 2010).
Also it’s important to realise that both the headline rate and the introductory bonus are variable, which means they could drop at any time. As such you’ll have to keep an eye on your account and move your money if the rate becomes uncompetitive.
Finally the account only offers branch-based access so if you favour online or telephone banking, this isn’t likely to suit you.
What's the alternative?
If you’re looking for an instant access account that can be operated online, Sainsbury’s Online Saver is an option worth considering as it offers a decent rate of 3.20% AER. However, you will need a minimum of £1,000 to open the account. Alternatively, Tesco’s Internet Saver offers a competitive return of 3% AER and can be opened with as little as £1.
If you’re prepared to lock your money away without access for a set period of time it's worth considering a fixed rate bond as there are even better returns available. For example the 1 Year Fixed Rate Bond from FirstSave pays a guaranteed return of 3.50% AER for 12 months.
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.
