The AA has unveiled a pair of new savings accounts, including an exclusive product for its breakdown members.
The Member Saver offers a variable 0.86% rate for those who already get breakdown cover from the AA. The second product is the Easy Saver, which is open to everyone. This has a headline rate of 0.75% variable, but includes a 12-month 0.55% bonus.
Both accounts can be opened and managed online or over the phone. The minimum deposit is £100 and there are no restrictions on the number of withdrawals. Up to £2 million can be invested in either account.
Interest is paid on the anniversary of the account opening and consumers receive protection on up to £85,000 of savings under the Financial Services Compensation Scheme.
The AA says the new accounts are targeted at car users as more than a third (35%) of people surveyed plan to buy a vehicle this year using their savings. This compares to 14% who will take out a loan.
Michael Johnson, managing director of AA Financial Service, says: “Knowing that saving for a car is high on our members’ priority list we wanted to design an account to help them do just that.
“This is our first ever savings account exclusively for AA members, helping them benefit even further from their membership.
“The account is simple and straightforward and offers members a consistently competitive return on their savings.”
Increased competition in the savings market is always good news but these accounts are some way behind today’s best buys, especially if you’re not an AA member.
The RCI Bank Freedom Saver currently tops the Moneywise best buys table with a rate of 1.10%, although this is an online-only account.
If you don’t want an online-only account try the NS&I Income Bond. This is accessible over the phone and by post, as well as online. At 1% it is a lower rate than the RCI product, but still well above those offered by the AA.
If you do choose to take out one of the AA Easy Saver accounts, remember the rate will be slashed to a paltry 0.2% after a year. So remember to make a note in your diary to switch your cash when this happens.