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The higher rate is paid on balances between £50,000 and up to £1 million, which includes a 12 month bonus rate of 2.80% gross p.a.
Alternatively for those will a less substantial investment, the AA savings account is offering 3.15% p.a/AER on investments between just £1 and £49,999 which includes a bonus rate of 2.65% for 12 months.
This account provides savers with instant access to their funds by transferring cash to their nominated linked account, allowing them to make unlimited transactions without giving any prior notice.
Apply for and manage your AA Internet Extra account securely online, with full and mini statements available using the online banking facility.
These high rates are made possible as the account is fully operated online, allowing the firm to cut out the middle man and pass savings onto customers.
Interest is variable and calculated on a daily basis, paid on the anniversary of the first deposit and annually thereafter. Interest can be paid to your AA account, or to any another UK bank or building society account.
To benefit from the higher tier rate of 3.30% gross p.a./AER savers must maintain a balance of at least £50,000.
This provides another example that the savings market is heating up and showing signs of improvement amid the recession. Moves like this are likely to jump start the competition within the savings industry, with other providers reacting in an effort to keep up with the competition.
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