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Effective immediately, Abbey customers will be able to benefit from 10% AER through the mortgage bank's Super Monthly Saver account. The account is designed for people wanting to save regularly to accumulate a lump sum after 12 months.
Savers need to make 13 consecutive fixed monthly payments of between £20 and £250 by standing order to earn the full 10.00% gross pa / AER. A standing order needs to be set up between the 1st and 21st of the month, and start the month following the account opening.
To qualify for the offer, savers need to be existing customers holding a qualifying Abbey bank account or other product, and need to open the account at an Abbey Branch. Savers also need to be 16 years or older.
Qualifying Abbey current accounts include: Abbey Current Account (Preferred In Credit Rate and Preferred Overdraft Rate), Abbey Graduate Current Account, Abbey Student and Postgraduate Current Account, Abbey 16-18 Current Account and Abbey Basic Bank Account.
As the Super Monthly Saver account is for a 12-month fixed rate period, the balance is transferred automatically at the end of the term into Abbey's Flexible Saver account. This currently pays a variable rate of 3.60% gross p.a. /AER.
If savers make a withdrawal, miss a payment or pay in less than £20 into their Super Monthly Saver during the 12-month period, 0.10% interest will be applied to the account for that month only on the full balance. The rate will then revert back to 10.00% gross p.a. / AER the following month (provided there are no further withdrawals or missed payments for that month).
If more than £250 is paid into the Super Monthly Saver, 0.10% interest will be applied to the full balance in the account for the rest of the term.
Finally, if customers cease to hold the above qualifying accounts while saving into the Abbey Super Monthly Saver, they will be automatically transferred into the Abbey Fixed Rate Monthly Saver, currently paying the equivalent of 7.25%.
03 July 2007 © Moneyextra.com
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