Citi Reward Saver Account
This account from Citi Bank offers a seemingly great rate of 1.65% AER, which is certainly high enough to propel this account into the best buy tables, but there's a significant drawback in that this rate includes a special bonus which is only payable for the first 9 months of account operation, after which the rate drops fairly significantly.
This doesn't make the account particularly attractive to those starting out in savings with only monthly deposits to add to the account, although if you have already built up a good amount of money to invest then the high rate begins to make sense even over the short period. To this end, you an invest up to £500,000 (minimum 1).
Indeed, this account isn't really suitable for casual savers, as while you have instant access to your funds, you'll lose all the interest earned during the month of any withdrawal you make. However, interest is paid monthly in months where no withdrawal has taken place.
The combination of the short bonus period and the imposition of withdrawal penalties really make this an account for a serious investor, who is happy to place a large amount of money in the account knowing that it'll probably be time to look elsewhere once the bonus period has ended, transferring both the initial investment and the interest earned to somewhere which will by then be offering a better deal.
Citi Reward Saver in brief:
| Account: | Citibank Reward Saver |
| AER: | 1.65% |
| Interest Paid: | Monthly |
| Minimum Investment: | £1 |
| Maximum Investment: | £500,000 |
| Comments: | Paying 1.83% gross for 9 months, then underlying rate of 1.05% |
