Ford Money launches 4% regular saver

22 May 2017
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Ford Money has launched a regular saver paying 4% interest for a year, with no restrictions on who can apply for the account.

This means the 12-month fixed rate is available to everyone rather than being linked to a current account, as is the case for many regular savings accounts.

You can deposit between £25 and £250 into the account per month, meaning savers could save up to £3,000 over the course of the year. The account can be opened online or over the phone.

 

What’s also different about the account is that it can be opened as a standard regular saver or as a regular saver held within an Isa wrapper. Savers who choose the Isa option will be able to pay the remaining £17,000 of their yearly Isa allowance into one of Ford’s flexible or fixed Cash Isas – something which is known as a split Isa.

When the regular saver account matures, the cash will be transferred to either Ford Money’s flexible saver - which currently pays 1% - or to its flexible Cash Isa, which pays 0.9% at present.

 

How does Ford’s regular saver compare?

Ford Money’s headline interest rate of 4% can be beaten by First Direct, HSBC, M&S Bank, Nationwide and Santander, which all pay 5% interest fixed for a year.

However, with these accounts all require you to hold a current account with the bank, which will rule out many people.

This makes Ford’s account the top open-to-all pick on the market today. The next best is the Virgin Money Regular eSaver which pays 2.25%.

Of course, another point to consider is how much you’re able to pay in each month. Nationwide allows account holders to save anything from £1 up to a hefty £500 per month, but other providers are more restrictive. First Direct accepts between £25 and £300 a month while Ford Money, HSBC and M&S Bank allow deposits of between £25 and £250.

Virgin Money will accept anything between £1 and £250 each month, while with Santander you’re limited to between £1 and £200 per month.

Comments

In reply to by anonymous_stub (not verified)

Apparently closed on day of opening (ISA lasted 3 days)....just shows that Ford didn't do their research properly as pitched the rate too high and did't have enough money for the product. Initially good PR, but now backfired as people like me will say when something is notified it has probably already sold out. If it had lasted 2 weeks then that would have been different (still not great for regular saver) but more understandable. Why did I not apply last Monday? Two reasons...1) I was walking in the Lake District......2) Your newsletter only came on Tuesday.....so Ford hasn't done you any favours either as the account was already closed!

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