Earn 7.5% On Your Savings!
You could be paid 7.5% interest on one table-topping savings account, although the conditions are very tough! We give you the lowdown on the best savings deals.
I was perusing savings account tables earlier this week (as you do) and I was surprised to find an account that paid out 7.5% interest. Even after last month's rise in the base rate to 5.5%, that's some payout! What's more, the minimum deposit is just £1.But then I read the blurb, and there's a very big catch. Yes, the BMW Car Saver Account pays out a stonking 7.5% AER, but you can only open the account if you saving to buy a BMW car in the next year. That counts me out....Still, there are plenty of other good savings accounts out there with far less onerous conditions.The Anglo Irish Bank 1-year Fixed Rate Bond, for example, pays out a 6.45% AER. You have to keep the money in the account for a year, and the rate won't go up even if the base rate rises futher, but it looks a pretty attractive deal to me.However, I suspect many Fools prefer the simplicity of an instant access savings account. So I've picked a selection of five instant access accounts which would accept a one-off deposit of £500 and are available to all -- not just pensioners. I've also tried to focus on savings accounts that don't have too many strings attached.My favourite instant access savings accounts accepting £500 deposits:Provider/AccountInterestAERMin/MaxDepositBonuses/Conditions/GuaranteesICICI HiSAVE(apply throughThe Fool)6.05%£1+Gross rate stays at least0.25% higher than baserate until 31/12/07.Chelsea BSRainy Day PostSaver6%£500-£250kRate includes introductory1% bonus for 12 months.Withdrawals beyond £2000in a year will be charged at£25 per withdrawal. Postonly.IcesaveEasy Access(apply throughThe Fool)5.95%£250-£1millionGuaranteed to exceedbase rate by at least 0.25%until October 2009, then notbe lower than base rateuntil October 2011.Anglo Irish BankEasy Access Deposit5.85%££500-£1millionRate guaranteed to be atleast equal to base rate untilJanuary 1, 2008. Post/phoneonly.Principality BSe-SAVER5.85%£1-£1millionOf the above five, my absolute favourite is the Icesave account. I like the base rate guarantee which lasts until October 2011. That means you can stick some money in this account and forget about it for a few years, confident that you're getting a decent return whilst you concentrate on other things.So there you have it, a brief review of some of the best savings accounts available today. And if you're not a regular saver right now, I urge you to start saving if you possibly can. Saving money now could be the route to financial security in the future.More: The Saver's Greatest Enemy | Superior Savings Accounts!