First the good news: according to a new survey from Sainsbury’s Bank, there are 39 instant-access, easy access and notice savings accounts which pay annual interest of 5% or more before tax. Now the bad news: the majority of these accounts are aimed at serious savers, because only twelve pay 5% gross AER on balances of £1 or more (including Sainsbury’s own Internet Saver Account). One problem with these high-paying accounts is that many rely on introductory bonuses to boost their interest rates, which then disappear after, say, six to twelve months. In addition, a number impose restrictions or penalties on withdrawals. For instance, several table-topping accounts pay no interest in any month during which a withdrawal is made. So, take out just £20 and you lose one month’s interest on your entire balance, even if you have thousands of pounds sitting there. Ouch!
This Is Money: Interest Rates Rise To 5%
The Bank of England has raised interest rates to their highest level for five years, putting up mortgages and the cost of Christmas
Motley Fool: Five Ways To Increase Your Christmas Coffers
I was watching an unfortunate victim of the Farepak fiasco being interviewed on television the other day. She had been saving £25 a week for months with the Swindon-based firm which ran a savings scheme for 150,000 people for vouchers and Christmas hampers until it went into insolvency last month. Her Christmas would be ruined, she said.
Motley Fool: BT’s Chunky Yield
Before today, BT Group (LSE: BT-A.L) was already one of the top-yielding shares in the FTSE 100 index. Today’s 19% rise in the interim dividend means it should retain that status for at least another year.
Motley Fool: Making Money From Royal & Sun
Turn-around situations can be very profitable for investors. One such has been at insurance giant, Royal & Sun Alliance (LSE: RSA). Those Fools who bought the shares 18 months to 2 years ago have been richly rewarded.
Scotsman: Pension Changes Help Boost Aegon UK
AEGON UK, the financial services firm, said it was continuing to benefit from changes to the UK pension system heralded by A-Day, helping it boost underlying earnings over the first nine months of 2006 by 22 per cent to £127 million.
This Is Money: PC World Fails Repairs Test
Staff at the computer chain failed to spot simple faults and told undercover researchers they needed to spend hundreds of pounds, says Which?
MoneyExpert: New Mortgage Range Ahead Of Base Rate Review
Alliance & Leicester has announced changes to its range of specialist mortgages to commence on November 9th, the same day that the Bank of England’s interest rate is reviewed.
MoneyExpert: Lenders Urged To Provide Ethical Products
Companies that offer financial services such as loans and mortgages are being urged to provide ethical products by the Norwich and Peterborough Building Society.
This Is Money: China’s Trade Surplus
The Daily Mail City team explain why a massive trade surplus may not be good news for the people’s republic