Online Bank Accounts – UK

Yorkshire Bank‘s (ybonline.co.uk) Cash ISA Fixed Rate Bond Issue 4 is a limited offer cash ISA launched on 19th April 2010.

The Bond pays a guaranteed interest rate so customers know exactly how much their savings will grow and it has the following main features:

• Interest rate of 3.90% Tax-free/AER until 31 May 2013
• Tax free growth
• Guaranteed interest rate until 31 May 2013 if held for the full term
• The minimum amount to invest is £2,000
• Interest calculated daily from date of deposit
  

This Cash ISA Fixed Rate Bond is designed for savers who do not need to access their funds before 31st May 2013. In case of money withdrawal before that date, customer will have to pay an early withdrawal charge of minimum £30 and the account will be closed.

The new Cash ISA subscription limit from the 6th April 2010 is £5,100.

Saga Personal Finance (saga.co.uk) has announced that it has topped the £4 billion mark in savings deposits, double the total deposits of some well-known building societies.

To meet the needs of its growing customer base, Saga is also this week expanding its range of saving accounts by launching the innovative Saga 5 Year Trigger Market Linked Deposit, linked to the performance of the FTSE 100 Index with an AER of 6.25%, and the Saga ISA Saver Postal with an AER of 2.6% to UK residents aged 50 and over.

Saga 5 Year Trigger Market Linked Deposit (plus ISA version)

The account offers an AER of 6.25%, providing the average of the FTSE 100 Index does not fall between the initial and maturity index readings over the term of the account. The FTSE 100 does not have to go up in order for customers to earn 6.25% return on their money – it just must not go down during the 5 year term.

If the FTSE 100 Index does fall customers will not receive any interest, however the original capital will be returned at maturity. Customers will also receive the Bank of England Bank Rate from the date funds are deposited, until the issue date of the account on 19 July 2010.

A minimum deposit of £500 is required and maximum deposit of £1m per investor (£2m for joint accounts) or £5,100 for the ISA version. Customers may withdraw funds or close the account before the end of the full term. A charge of 1.5% will apply on the amount withdrawn. Any remaining funds have the potential to earn 6.25% AER.

Saga ISA Saver Postal

This postal account offers an AER of 2.60%. The interest rate is variable and includes an 18-month bonus of 1.00% gross on accounts where interest is paid annually, and a 0.98% a month bonus on accounts that pay interest monthly.

The account comes with a guarantee that the interest rate will never be more than 2% below the Bank of England Bank Rate with a minimum rate of 0.25% AER and a maximum cap of 8%.

The minimum amount that can be invested is £500 and the maximum is £5,100 in the current tax year. Customers are able to transfer any existing cash ISAs they have held in previous years.

The account is instant access and there are no penalties for withdrawing funds – providing peace of mind that savings are close at hand, should they be needed. Interest will be paid after 12 months, again after 18 months and annually or monthly thereafter.