Holders of one AA account can now benefit from a higher interest rate.
People looking to compare savings have been told that the AA has increased the interest rates on one of its savings account deals.
The company’s Internet Extra instant-access package has now got an increased interest rate of 2.80 per cent gross, compared to the previous rate of 2.60 per cent.
Both new savers and current issue 4 account holders had the new rate implemented from February 14th 2011.
People who bank with the company will have interest paid on their savings when a linked bank account or their account reaches the anniversary of its first deposit.
Those who have placed various investments within the best-buy tables will benefit from the new rate.
Recently, Joanna Parsley, associate director of Credit Action, said that the global economic downturn has resulted in fewer individuals using savings accounts like ISAs. Ms Parsley said that the recession has left UK residents with less spare money to save up for the future.
The end of 2010 saw an increase in the amount of money being saved with mutuals.
People with savings accounts such as ISAs or fixed bonds at mutuals boosted their combined balances by more than £2 billion at the tail end of 2010, it has been revealed.
According to data published today (February 1st 2011) by the Building Societies Association (BSA), these balances at such institutions rose by £1.5 billion in December of last year, which followed on from an increase of £0.6 billion one month previously.
Brian Morris, head of savings policy at the BSA, commented that this shows mutauls enjoyed a “strong end to the year”, but he warned that households across the UK still face a “challenging year ahead”, meaning they may be forced to dip into their savings at some point in 2011.
Meanwhile, gross mortgage lending by mutuals slipped slightly from £2 billion in November 2010 to £1.8 billion one month later.
This comes after research by Cheltenham & Gloucester recently showed that many older people are storing cash away for their grandchildren in savings accounts.
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