AA hikes rate to 1.32 pc for new savers

AA SAVINGS has raised the rate on its online easy-access account to a top 1.32 pc for new savers.

This puts its Easy Saver just ahead of RCI Bank’s Freedom Savings Account and the Post Office Online Saver, both at 1.3 pc.

If you are tempted by the rate, be sure to move your money after 12 months, as the 1.32 pc deal includes a 1.12 percentage point bonus paid for the first year. After this, your rate drops to just 0.2 pc.

The Post Office account works the same way. You earn 1.3 pc for a year, after which the bonus disappears and your rate drops to 0.25 pc.

With both of these providers, your money ends up with Bank of Ireland, where up to £85,000 is covered under the Financial Services Compensation Scheme.

There is no bonus with the RCI Freedom account. In this long-time top account, up to €100,000 (£88,000) of your cash is protected under the French compensation scheme.

If you don’t want the bother of switching to another account, consider Ford Money Flexible Saver. At 1.17 pc, it stands just outside the top five online easyaccess accounts. On each £1,000, you will earn £11.70 a year.

But it comes with a guarantee that it will always pay competitive rates to its loyal savers. If it raises its rate to attract new savers, yours will automatically rise, too.