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Savings and investments companies

Alliance & Leicester helps savers get disciplined

Monday, 10 Nov 2008 11:36
Alliance & Leicester is promoting its "disciplined" savings account after it discovered many savers were tempted to dip into their accounts.

A survey by the bank discovered 57 per cent of savers see their savings account as somewhere to ransack to top up their spending.

A quarter of those surveyed admitted they raided their savings three to four times a year, and a fifth said they used their savings when they ran out of cash at the end of the month.

Alliance & Leicester said an instant access account, which could perhaps be linked to their current account, was ideal for these savers.

However, it said its eSaver Issue 2 was ideal for longer-term savers who wanted to exercise some discipline into their savings regime.

The plan offers a 6.3 per cent interest rate.

Hetal Parmar, manager for savings at Alliance & Leicester, said: "It's important to choose savings accounts that meet your needs and give you the right degree of flexibility.

"There are a range of different accounts available, including so-called 'disciplined' savings accounts that encourage savers not to dip into their savings by paying a high rate of interest for each month a withdrawal is not made."

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