It’s that time of year again - the time when some of us make well intentioned promises to ourselves or to our nearest and dearest - yes, it’s time to make our New Year Resolutions!
Most of us have grown up promising ourselves that we will do all manner of things in the dawn of a new year. Some promises we keep and some we do not - at least that’s true in my case anyway!
As we enter a new year, what better time can there be to review our own personal savings strategy - whether it’s to put something aside for a rainy day or to save for a future milestone event.
That’s why it’s timely to mention that we have introduced a range of new savings accounts including two that are designed specifically for young savers. Following the addition of our cash Junior ISA for our young savers in 2011 and our Young Saver Bonus Five account which has been available for a number of years we wanted to increase the choice and flexibility of accounts we offer to savers.
Our new Young Regular Saver account pays a variable interest rate of 3% AER/Gross* and is available for savers aged 17 or under. Accounts can be opened with a minimum of £1 and subsequent monthly investments can vary between £1 and £500. Two withdrawals per calendar year are permitted without notice or loss of interest. To make sure adults don’t miss out we have also added a Regular Saver account paying 3% AER/Gross* interest but with a slightly higher minimum monthly investment of £25.
A particularly attractive feature of both these accounts is that there is no restriction on the maximum number of investments that can be made each month providing the overall maximum of £500 per month is not exceeded. Parents and grandparents should actively encourage younger members of the family to put something away on a regular basis and with a minimum monthly investment of just £1 on the Young Regular Saver account then it’s an easy way to cultivate a regular savings habit.
In addition, a separate Young Saver account has also been introduced offering a variable rate of 2.50% AER/Gross*. Six withdrawals per calendar year can be made without notice or loss of interest but unlike the regular savings account, there is no requirement with the Young Saver account to invest on a regular monthly basis.
Once opened, both the Young Regular Saver and Young Saver accounts can be operated into adulthood without the need for any transfers.
On a slightly different note, businesses are invited to invest their surplus funds in our new Business Deposit Maxi Account which pays a variable interest rate of up to 2.10% AER/Gross* depending on the balance in the account. The account is ideal for putting surplus cash to work and possibly ring fencing periodic business expenses such as VAT, corporation tax or utility bill payments.
Remember, any worthwhile resolution must be accompanied by action so my advice is to do something now!
Gev Lynott, Chief Executive
* AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. The Gross rate is the contractual rate of interest payable before the deduction of income tax.