6% AER current account launched by Abbey

Abbey has launched the highest paying current account rate available in the UK and a competitive fixed rate monthly saver account.

The accounts, both launched on October 3 are paying six% gross Annual Equivalent Rate, guaranteed for 12 months. However the offer is only available for a limited time and has restrictions.

The current account rate is available to people switching to Abbey using its account transfer service and who pay in at least 1,000 each month. Abbeys account transfer service has recently been upgraded, and every person switching to Abbey now deals with a named contact who personally oversees the changeover.

The fixed rate monthly saver, which also pays six% gross AER, is exclusively for Abbey current account customers, both new and existing. Savers need to deposit between 20 and 250 every month to qualify for the six% rate.

Reza Attar-Zadeh, head of banking marketing at Abbey, says: This is a simple, straightforward offer which really gives people great value, with no fees. We know that most people in fee-paying accounts rarely get the full benefits of everything that is on offer, so were just offering the best current account interest rate available and access to Abbeys best savings rate, as thats what most people want.

The savings account is designed for people that want to save regularly to accumulate a lump sum, and can be opened with a minimum deposit of just 20. Savers need to make 11 consecutive fixed monthly payments of between 20 and 250 by standing order to earn the full six% gross AER.

As the fixed rate monthly saver account is a 12-month offer, the balance is moved automatically at the end of the term into Abbeys monthly saver account, which currently pays a competitive variable rate of 4.75% gross AER.

Attar-Zadeh says: We know people want a good rate of interest and wed urge anyone, particularly those with a low-paying current account with the Big Four, to switch to Abbey. Our current account is fee-free and pays the highest rate of interest in the market.

Weve also gone a step further by offering new and existing Abbey current account customers a Fixed Rate Monthly Saver account paying a great interest rate of six%.