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
|
|
Norwich & Peterborough BS: Regular Saver
|
4.00%
|
31/08/2010
|
Instant
|
£1-£250
|
N/A
|
3.20%
|
2.40%
|
|
Scottish BS: Regular Bonus Saver
|
4.00%
|
31/08/2010
|
Instant
|
£25-£500
|
N/A
|
3.20%
|
2.40%
|
|
Principlality BS: Regular Saver Bond Issue 10
|
4.00%
|
31/08/2010
|
Instant
|
£20-£500
|
N/A
|
3.20%
|
2.40%
|
|
Saffron BS: 12 Month Fixed Rate Regular Saver
|
4.00%
|
31/08/2010
|
Instant
|
£10-£200
|
N/A
|
3.20%
|
2.40%
|
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
|
Notice
|
Min Deposit
|
Introductory Bonus
|
Net Lower rate income tax
|
Net Higher rate income tax
|
|
|
|
|
|
|
Birmingham Midshires: Telephone Extra Account (Issue 2)
|
2.75%
|
31/08/2010
|
Instant
|
£1
|
2.25% for 12 months
|
2.20%
|
1.76%
|
|
|
|
|
|
|
AA Internet Extra (Issue 2) Account
|
2.80%
|
31/08/2010
|
Instant
|
£5,000
|
2.65% for 12 months
|
2.24%
|
1.79%
|
|
|
|
|
|
|
ING Bank: Savings Account Step 1
|
2.75%
|
31/08/2010
|
Instant
|
£1-£25,000
|
2.25% for 12 months
|
2.20%
|
1.76%
|
|
|
|
|
|
|
Saga: Telephone Saver Monthly
|
2.75%
|
31/08/2010
|
Instant
|
£1
|
1% for 12 Months
|
2.20%
|
1.76%
|
|
|
|
|
|
|
Santander: eSaver Issue 2
|
2.75%
|
31/08/2010
|
Instant
|
£1
|
2.25% 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
|
|
Melton Mowbray BS: Online 30 Day Notice
|
2.58%
|
31/08/2010
|
30 Days
|
£1,000
|
Variable
|
2.06%
|
1.55%
|
|
Market Harborough BS: 30 Day Notice
|
2.55%
|
31/08/2010
|
30 Days
|
£1
|
Variable
|
2.04%
|
1.53%
|
Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority