Northern Rock launches new online banking option

One provider of personal and business bank accounts has recently announced the launch of the newest version of its popular online banking option.

Taxpayer owned Northern Rock recently said that its E-Saver 6, one of its internet savings accounts, will now be made available to customers.  With a 2.75 per cent interest rate (2.2 per cent after basic rate taxes), the new offering will give savers easy access to their cash, the bank stated.

The newest issue of this account does not carry a bonus rate on the initial 12 months of the offering.  Despite this, it’s 2.75 per cent rate of return puts it near the top of the best buy tables for online banking options that similarly have no initial bonus rate.

Santander’s e-Saver 3 leads the back in regards to internet-based accounts in the UK with its 3 per cent rate.  However a full 2.5 percentage points is comprised of a bonus rate, leaving savers with little to recommend it for after those initial 12 months.

After this first year bonus expires, savers will need to relocate their cash or face an abysmal 0.5 per cent return on their investment.  Moreover the bonus rate is variable, meaning it’s subject to change at any time.

In comparison, Sainsbury’s Online Saver pays pays 2.85 per cent.  However the accounts limits savers to only three withdrawals every 12 months – and after its bonus rate expires after the first year, it too drops to a paltry 0.5 per cent as well.

Supermarket giant Tesco also offers an Internet account with a 2.9 per cent rate.  Its fixed bonus rate is slightly less at 1.65 per cent, which means that after its expiration the new rate is nowhere near as insignificant as Sainsbury’s and Santander’s.

 

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