Easy access savings market hots up

Alan O'Sullivan, This is Money Coventry Building Society has launched its eSave account with an interest rate of 3.25% for the over-50s only, by far the best account open to retirees dependent on income from their savings. Even though it is an easy access account allowing unlimited withdrawals, the rate is fixed for the first year, similar to a one-year bond. Alliance & Leicester has also launched an online saver with a rate of 3.15%, bringing the total number of internet accounts paying over 3% to four: ING Direct already pays 3% and Leeds Building Society pays 3.05%, although the latter is bolstered by a 1% bonus that disappears after the first year. Although these rates are low in comparison to the 6%-plus rates seen last year, they are still highly competitive as, out of the 932 instant access accounts on the market, only... [read full story]                    

powered by