Alliance & Leicester has increased the interest rate on its Online Tracker savings account to 6.30% AER, including a 1.30% gross bonus until 4 January 2010, with a guarantee that the underlying rate will track the Bank of England Base Rate until 31 January 2011.

Online Tracker used to pay tiered interest rates of 4.25% for balances below £100,000 and 4.75% for balances above £100,000.

"Online Tracker is ideal for people who need to access their savings on a regular basis, the account allows instant, penalty-free access from any linked current account," said Hetal Parmar, Manager for Savings.

The account can be opened with a minimum balance of £1 (maximum £2 million).

The changes to Online Tracker follow the recent launch of A&L's eSaver Issue 2 at 6.60% gross pa/AER (6.41% gross monthly), which is designed for longer-term savings.  In return for a higher interest rate, if a withdrawal is made in any month other than July, no interest is earned on the account balance for that month.

---

Tag this article :