Saving accounts up to 12% in UK

[jrewing]

Watching UK channels makes me jealous - savings accounts with up to 12% interest in UK !! One ad compares their product with 5 other major banks, and they all offer interest rates of >7%.

1. How can the UK banks afford this ?
2. Can an Irish resident open an a/c with a UK bank ? If not, why not, in this era of open borders ?

 

[sunrock]

Which bank offers this rate?
most offer about 5% max.
It may be over 2 years.

 

[GeneralZod]

No, it really is per year. Alliance & Leicester do it. See this link

Almost makes me want to move to the UK.

 

[irishlinks]

There's a catch (as there always is) - it's a monthly saver account and you can only put in a max of £250 a month. Also you have to open a current account with them. The 12% rate only lasts for 12 months - so I don't think the extra interest you would make over there would even pay for a plane ticket. It's just a ploy to get new current accounts opened.

 

[Tarquin]

You're right, I just looked it up in the link you provided.

 

[GeneralZod]

It's just a ploy to get new current accounts opened.

A mere cynical ploy I'd like to see the British and Viking invaders bring over here

 

[Guest109]

Alliance & Leicester have a branch in Newry and Derry so just pop across the border ,or probably they have postal ot internet accounts ,most banks have

 

[kraggy]

can i ask what will be a very simple question for most but i'm not sure of it myself...

is the 12% in question 12% of the end of year's savings or is it 12% calculated in a compound manner each month?

also what is e.a.r?

or alternatively, could anyone provide a link explaining all these different interest rates cause every time i see an ad there's something different mentioned.

would really be appreciated,

thanks

k.

 

[annR]

You have to be resident in the UK to open an Alliance & Leicester account.

 

[CCOVICH]

You have to be resident in the UK to open an Alliance & Leicester account.

Yes but that's never stopped ainya posting about such offers before.

 

[ClubMan]

Alliance & Leicester have a branch in Newry and Derry so just pop across the border ,or probably they have postal ot internet accounts ,most banks have

Is interest on foreign deposits subject to income tax (and maybe also PRSI) in Ireland?

 

[kraggy]

any ideas for my questions above?

thanks

 

[CCOVICH]

The 12% will be added in whatever manner the bank detail in the account's terms and conditions.

EAR=equaivalent annual rate, i.e. this rate takes account of compounding etc. and is pretty much the same as AER, CAR etc. Think of it as APR for savings.

 

[kraggy]

excellent thanks