Asda banks on savings
Supermarket ASDA, famous for its every day low prices, will today (12 November 2007) launch an on-line savings account that offers the reverse – an every day high interest rate without unnecessary complicated tie-ins and penalties.
The account which delivers one of the best rates on the market, is a first for ASDA, provides easy access for savers with an interest rate of 0.60% p.a above the Bank of England base rate and is guaranteed for the next 12 months.
This currently means 6.35% p.a gross/AER variable including a 0.6 0% p.a bonus for 12 months from the date of account opening with the added security that if you need to take money out at anytime there are no penalties.
After the first 12 months the account offers a base rate guarantee that promises to match follow the Bank of England’s until the end of October 2010.
To open an ASDA internet saver customers need to be over 18, live in the UK, have a personal bank or building society current account with direct debit facilities, access to an email address and just £100 to save.
ASDA recognises the economic pressures that some savers face so there is no minimum amount that has to be saved on a monthly basis only an account maximum limit of £2m. This means the account is ideal for regular saving or people who have a lump sum to invest.
“Customers tell us that they find many savings accounts overly complicated and when they see an attractive interest rate, it very often comes with either withdrawal penalties or ‘hidden’ catches,” said Gev Lynott, ASDA’s financial services director.
“With the ASDA account what you see is what you get. The same great high interest rate for everyone with the flexibility to put money in or take it out – it’s as simple as that,” added Gev. To open an account, or for more details, just visit www.asdafinance.com/internet-savings.html
AER stands for Annual Equivalent Rate. This is the notional rate assuming interest was paid and compounded yearly. As every savings product advertisement which quotes an interest rate must show the AER, this lets you compare products more easily. Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law. The ASDA Internet Savings Account is provided by Bradford & Bingley ASDAInternet Savings is provided by Bradford & Bingley plc, who are authorised and regulated by the Financial Services Authority (FSA reg no 106126). Registered Office: PO Box 88, Croft Road, Crossflatts. Registered in England No. 3938288. VAT registration number 287371034