Bank Deposit Accounts
Savings are guaranteed by the Government under the Financial Services Compensation
Scheme (FSCS) as long as the provider has a UK banking licence. Individuals are guaranteed the first £50,000 of deposits per UK banking licence. The level
of cover for couples is £100,000. This means that savers can spread their risk by investing in accounts
under different UK banking licences, potentially utilising the guarantee multiple times. Although numerous
takeovers and mergers have complicated who owns whom and whether they have retained separate banking
licences, the FSA has a helpful page
for this purpose and we have only included providers where we are confident that they are covered. This also applies to Cash ISAs. All deposit accounts are taxed as income at your marginal rate of tax.
Regular Saver
These allow depositors to invest an amount of money on a monthly basis. The amount investors can deposit on a
monthly basis will be fixed between two bands by the provider and the rate of interest may be fixed or variable
normally typically depending on whether withdrawals are allowed.
| Regular Saver Accounts |
Gross AER |
As of |
Notice |
Savings Level |
Offer period |
Net Lower rate income tax |
Net Higher rate income tax |
|
Buckinghamshire BS: Chiltern Gold Builder
|
4.12%
|
08/03/2010
|
Instant
|
25-500
|
12 months - Fixed rate
|
3.30%
|
2.47%
|
|
Nottingham BS: Branch Fixed Rate Regular Saver Issue 1
|
5.01%
|
08/03/2010
|
Instant
|
£10-£100
|
N/A
|
4.01%
|
3.01%
|
|
Stroud & Swindon BS: Regular Saver Plus Issue 2
|
4.50%
|
08/03/2010
|
Instant
|
£10-£250
|
12 months - Variable rate
|
3.60%
|
2.70%
|
Variable Accounts
Investors are advised to consult the provider of these products as the terms can be variable. The most
important information is, however, included below. The accounts here are those with the highest Annual
Equivalent Rate.
These tend to offer reasonably attractive rates as the notice period is fixed for short period of time,
typically between two and four months. Interest rates are variable, although they don't tend to change frequently,
and the notice and minimum deposit will vary.
| Variable Accounts |
Gross AER |
As of |
Term/Notice |
Min Deposit |
Introductory Bonus |
Net Lower rate income tax |
Net Higher rate income tax |
|
AA Internet Extra (Issue 1) Account
|
3.00%
|
08/03/2010
|
Instant
|
£1
|
2.65% for 12 months
|
2.40%
|
1.92%
|
|
Coventry: 1st Class Postal Account (3)
|
3.15%
|
08/03/2010
|
Instant
|
£1,000
|
1.30% for 12 months
|
2.52%
|
2.02%
|
|
Halifax: Websaver Extra
|
2.80%
|
08/03/2010
|
Instant
|
£1
|
N/A
|
2.24%
|
1.79%
|
|
Investec H5
|
3.16%
|
08/03/2010
|
6 months
|
£50,000
|
N/A
|
2.53%
|
2.02%
|
|
Investec High 5
|
3.16%
|
08/03/2010
|
3 months
|
£25,000
|
N/A
|
2.53%
|
2.02%
|
|
Nottingham Building Society: First Home Saver
|
2.80%
|
08/03/2010
|
Instant
|
£5,000
|
N/A
|
2.24%
|
1.79%
|
|
Tesco Bank: Internet Saver
|
2.75%
|
08/03/2010
|
Instant
|
£1
|
1.50% for 12 months
|
2.20%
|
1.76%
|
Notice Accounts
These tend to offer reasonably attractive rates as deposits are fixed for short period of time,
typically between 2 and 4 months. Interest rates are variable, although they don’t tend to change frequently,
and the notice and minimum deposit will vary.
| Notice Accounts |
Gross AER |
As of |
Term/Notice |
Min Deposit |
Fixed/Variable |
Net Lower rate income tax |
Net Higher rate income tax |
|
FirstSave: 90 Day Notice
|
3.25%
|
08/03/2010
|
90 days
|
£100
|
Variable
|
2.60%
|
1.95%
|
|
Secure Trust Bank: 90 Notice Issue 1
|
3.03%
|
08/03/2010
|
90 Days
|
£1,000
|
Variable
|
2.42%
|
1.82%
|
|
Turkish Bank (UK)
|
3.12%
|
08/03/2010
|
60 days
|
£1,000
|
Variable
|
2.50%
|
1.87%
|
Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority