The Alliance & Leicester is to launch it’s Premier Regular Savings account at the end of the month, which is promising to pay 10% interest – it does however come with several catches, as the Motley Fool points out:
- The account is only available to new customers opening a Premier Direct current account.
- You must pay in something every month.
- The maximum deposit in a year is £3000.
- The rate only lasts for one year.
- You will be penalised for making any withdrawals.
Having said that, Motley Fool do seem to suggest that this account might be worthwhile for those with regular savings to put away (for a year). They point to the fact that this headline grabber is in fact being used to encourage people to open one of their Premier Direct current accounts, which is actually a reasonably high paying account (5% AER), they charge no interest on agreed overdrafts (and only 5.9% AER for money that you haven’t had approved). Finally, there is £50 cashback available for referring a friend (they get £50 too).
So it may well be worth considering if you’re not happy with your current current account.