Traditional V's New Banks: How Savings Accounts Fare

             Traditional V's New Banks: How Savings Accounts Fare

  PR Newswire

  CHESTER, England, November 13, 2012

CHESTER, England, November 13, 2012 /PRNewswire/ --

  *New kids on the savings block can offer more competitive deals

Analysis from MoneySupermarket has revealed that a host of new banking
entrants can currently offer consumers a better return on a range of savings
products, more so than deals offered by the traditional high street banks.

Easy Access ISAs

Marks & Spencer Bank is currently offering a rate of 3.00 per cent on its Easy
Access ISA*, while The AA offers a rate of 2.70 per cent AER on its Postal
Access ISA however, there are minimum deposits of £100 and £500 respectively
on these accounts. By comparison, the best offering from one of the
traditional high street banks is 2.64 per cent with Barclays Loyalty Reward
ISA which also includes a bonus of 0.60 per cent for 12 months, and is only
available to existing customers.

Fixed Rate Bonds

When it comes to Fixed Rate Bonds there are also some interesting deals around
that go beyond just the traditional high street offers. Shawbrook's Fixed Rate
Bond account tops the table for one year bonds with an AER of 3.00 per cent
although there is a minimum deposit of £5,000. Bank of Baroda offers a rate of
2.95 per cent, and this account requires a minimum deposit of just £500.
However, even Tesco Bank offers a better interest rate than the main high
street banks, at 2.75 per cent and with a minimum deposit requirement of
£2,000. The best one-year offerings by RBS and NatWest both pay 2.30 per cent
AER with a minimum deposit of £2,000, whilst Santander insists on just £500
for its bond paying 2.30 per cent.

Easy Access Savings

Despite significant falls in interest rates, it is the new players who
continue to offer rates ahead of the high street banks. Tesco Bank's Internet
Saver account offers a rate of 2.40 per cent, but this does include a bonus
rate of 1.15 per cent over 12 months. The best deal offered by one of the high
street banks is Halifax's online saver paying 2.05 per cent, although this
account doesn't include any bonus rate.

Kevin Mountford, head of banking at  MoneySupermarket  commented: "We've
seen a rise in new competition on the high street, for example with the
supermarkets and new entrants such as Metro Bank appearing, which has created
more competition and choice for consumers. The newer entrants are offering
some good accounts at the moment with interest rates that are currently edging
ahead of the more traditional high street banks, meaning savers can get a
better return on their money. However, some have a larger deposit requirement
so it's important savers check all options first. It is also worth remembering
that the Financial Services Compensation Scheme (FSCS) protection levels for
new entrants is the same £85,000 that you get from the main high street banks.

"Our analysis underlines the importance of not necessarily accepting the deal
being offered by your bank. Shopping around for a home from your savings can
help you maximise the returns on offer, especially when rates have been so
volatile and every penny counts. However, it is also important to keep an eye
on the rate being paid on your account as although you may be offered good
rates initially, they will drop over time, no matter which provider your
savings are with."

    Main Banks

    Fixed Rate Bonds - based on GBP25,000
       Provider         Term         Deposit     AER
    Royal Bank of
    Fixed Rate Bond
    Internet Only
    Addition           1 Year       GBP2,000    2.30%
    Fixed Rate Bond
    Internet Only
    Addition           1 Year       GBP2,000    2.30%
    Fixed Rate Bond    1 Year        GBP500     2.30%
    Fixed Saver        1 Year        GBP500     2.25%
    Lloyds TSB
    Term Deposit       1 Year       GBP2,000    2.00%
    Fixed Rate
    Savings Bond       1 Year        GBP500     2.00%
    Fixed Rate
    Saver              1 Year       GBP2,000    1.80%

    Best Buys

    Fixed Rate Bonds - based on GBP25,000
       Provider         Term         Deposit     AER
    Fixed Rate Bond
    Issue 3            1 Year       GBP5,000    3.00%
    Bank of Baroda
    MAX Fixed Rate
    Bond               1 Year        GBP500     2.95%
    Fixed Term
    Deposit            1 Year       GBP5,000    2.75%
    Tesco Bank
    Fixed Rate
    Saver              1 Year       GBP2,000    2.75%
    Metro Bank
    Fixed Term
    Savings            1 Year        GBP500     2.50%

    Easy Access ISAs - based on GBP5,640
       Provider       Deposit        AER      Transfer In
    Barclays                        2.64%
    Loyalty Reward               (includes a
    ISA (existing                0.60% bonus
    Barclays                        for 12
    customers only)     GBP1       months)        No
                                 (includes a
    Halifax                      2.10% bonus
    ISA Saver                       for 12
    Online              GBP1       months)        Yes
                                 (includes a
                                 1.00% bonus
    Lloyds TSB                      for 12
    Cash ISA Saver      GBP1       months)        Yes
    e-ISA               GBP1        2.00%         Yes
    Cash e-ISA
    (existing HSBC
    customers only)     GBP1        1.75%         Yes
    Royal Bank of
    Instant Access
    Cash ISA            GBP1        0.55%         Yes
    Easy ISA            GBP1        0.10%         Yes

    Easy Access ISAs - based on GBP5,640
       Provider    Minimum Deposit     AER      Transfer In
    Marks &
    Advantage Cash
    ISA                GBP100         3.00%         Yes
                                   (includes a
    The AA                         2.20% bonus
    Postal Access                     for 12
    ISA (Issue 4)      GBP500        months)        Yes
                                   (includes a
    Tesco Bank                     0.50% bonus
    Instant Access                    for 12
    Cash ISA            GBP1         months)        Yes
    Virgin Money
    Easy Access
    Cash eISA
    Issue 2             GBP1          2.40%         Yes
    Metro Bank
    Instant Access
    Cash ISA            GBP1          2.35%         Yes

    Easy Access Savings
    Based on GBP1,000
         Provider          Min Invest            AER         Bonus
    Onilne Saver              GBP1              2.05%         N/A
    Santander                                                for 12
    eSaver (Issue 9)          GBP1              1.50%        months
    Barclays                                                 for 12
    e-Savings Reward          GBP1              1.26%        months
    Lloyds TSB                                               for 12
    Easy Saver                GBP1              1.20%        months
    (existing NatWest
    customers only)           GBP1              1.00%         N/A
    Royal Bank of
    Direct Saver              GBP1              1.00%         N/A
    Online Bonus Saver        GBP1              0.75%         N/A
    Sourced by 13.11.2012

    Easy Access Savings
    Based on GBP1,000
        Provider      Min Invest  AER     Bonus
    Tesco Bank                          1.15% for
    Internet Saver       GBP1    2.40%  12 months
    Marks & Spencer
    M&S Everyday                        1.00% for
    Savings              GBP1    2.35%  12 months
    Virgin Money
    Easy Access
    eSaver Issue 4       GBP1    2.20%     N/A
    GE Captial Direct
    Bonus Saver Issue                   0.70% for
    5                   GBP500   2.20%  12 months
    Sainsbury's Bank
    Extra Saver          GBP1    1.80%     N/A compares (at 30 ^th  Oct 2012)

  *129 car insurance brands and 100 home insurance brands
  *10 broadband providers and 18 energy providers
  *30 unsecured loan and 5 secured loan providers
  *62 mortgage lenders and 29 credit card providers
  *66 savings providers and 37 current account providers.
  *Over 950,000 mobile phone deals

Our customers

We help our customers to save money on all of their household bills by
providing a free, easy to use online service so they can compare a wide range
of products in one place and find the product most suited to their needs. Our
size means we are able to offer our customers exclusive, market-leading deals,
including some they can't even get direct from providers.

Our providers

By having considerable volumes of informed customers actively looking for
products and ready to purchase, we offer our providers an efficient and cost
effective customer acquisition solution across all of our channels. This
enables our providers to target their marketing spend in an effective and
completely measurable way.

Our revenue comes predominantly from fees paid to us by product providers when
a customer clicks through to their website and actually applies for or
purchases a product. It is a success based marketing fee.

Our customer commitment

  *We make it easy to find the brands you expect to see
  *We strive to ensure a product cannot be found cheaper by going direct
  *We let you remain in control of your personal data
  *We are independent and impartial
  *We make it easy to switch and save
  *We strive to always show the most competitive product available

Contact: Paul Lawler, PR Manager, Tel: +44(0)1244-370-317, Email:
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