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AA ISA and Savings Account Review

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In this AA Savings Accounts and ISA review, we take a closer look at the savings products offered by this well-known UK service provider. to help you decide if one of their online savings accounts might be the right choice for you and your cash.

While the AA is probably most well-known for its UK breakdown cover, these days the company now offers a wide range of other services too. These services include financial services such as travel insurance, credit cards and also savings accounts. Today we’ll be looking more closely at their savings products.

The AA currently offer 4 different types of savings account on their website. These are the Easy Saver, Member Saver, Easy Access ISA and a Fixed Rate ISA. All of these accounts can be managed online but each one comes with different benefits and features. So, let’s examine them one by one to help you decide which one might be right for you.

The AA Easy Saver

At the time of writing, the AA Easy Saver account has an interest rate payable of 1.36% gross variable for the first 12 months.

The fact that it is easy access means that there are no penalties or notice periods required if you want to withdraw your cash at any time. You also won’t be charged for withdrawals.

As with all other AA savings accounts, you can manage your account and also apply online.

One important thing to note with the AA Easy Saver account is that it comes with a fixed bonus – 1.16% at the time of writing – taking the rate payable for the first 12 months up to 1.36%. The fixed bonus is only payable for the first 12 months from the date your account is opened. After the 12 months, the interest rate payable on the account will drop to 0.2%. This means you may want to look at moving your money elsewhere at this point to find a better rate.

Interest on the Easy Saver account is paid annually on the anniversary of your account opening. Interest is paid gross.

You will need a minimum deposit of £100 to open an AA Easy Saver account. After this, you can save on a flexible basis with regular or lump sum deposits. You must maintain a minimum balance of £100 to keep the account open.

AA Member Saver

The AA Member Saver is an exclusive savings account which has been created to reward the loyalty of AA members.

The AA Member Saver comes with an interest rate of 1.37% variable at the time of writing. The interest is again paid annually on the anniversary of your account opening and it is paid gross.

The Member Saver account does not come with a 12 month bonus rate. This means there may be less need to move your money if the rate remains competitive with easy access accounts offered by other providers.

With the AA Member Saver, it is easy to access your money with no penalties or notice periods required. As with the other AA savings accounts you will need a minimum deposit of £100 to open the account. This minimum balance needs to be maintained throughout the life of the account.

Once opened, you can save on a flexible basis with regular or lump sum deposits. You can also manage your account online or over the phone 24/7.

AA ISAs

Now we come to our review of the AA ISA accounts.

When you save money via an AA ISA, you are not limited to saving in just one product type. Instead, you can save in both their Easy Access and Fixed products as part of one ISA. Be sure you don’t exceed your annual ISA allowance, though.

Keep this in mind as we look at both the Easy Access and Fixed ISA products from the AA.

The AA Easy Access ISA

The AA Easy Access Cash ISA currently pays an interest rate of 1.16% variable. This includes a fixed 12 month bonus of 0.96%. As this is an ISA, the interest is paid tax free.

After the first 12 months the interest rate payable will drop to 0.2% tax free. So, you may decide to move your money elsewhere at this point to look for a better rate.

If you haven’t paid into other ISAs then you can pay in up to £20,000 during the current tax year. Don’t forget you can also split some of this amount across the AA’s fixed ISAs too if you desire.

You can open an AA Easy Access ISA with a minimum of a £100 deposit. You can also transfer in an ISA held with another provider.

Interest is calculated daily and it is paid in March.

The account comes with unlimited free withdrawals. There is a minimum withdrawal amount of £10 or the full value of the product if it is less than £10.

You can again manage your account online 24/7 but AA ISA accounts can’t be managed over the phone.

The AA Fixed Rate ISAs

The AA offer both a One Year and a Two Year Fixed Cash ISA. These currently pay interest rates of 1.36% and 1.51% respectively.

As this is a fixed rate account, the AA limit you to one deposit per fixed rate product. You can, however, open as many fixed rate products as you like.

The minimum deposit required per Fixed Rate ISA product is £500. You can also transfer in ISAs held elsewhere if you would like to.

Interest is calculated daily but is paid annually on the anniversary of your opening the account.

With this being a fixed rate account, you will be charged a fee if you withdraw your money early. That being said, there is no breakage charge if you change your mind within 14 days after opening the account.

Is Your Money Safe With the AA?

Now that you know more about what each AA savings account and ISA offers, you may be wondering if your money is safe when you save with the AA?

The good news here is that, as all of the money you save with the AA is deposited with the Bank of Ireland UK, your savings will be eligible for FSCS (Financial Services Compensation Scheme) protection up to a maximum of £85,000.

You Don’t Need to Be a Member

We hope that this AA savings review has helped you to come to a decision over whether you want to open an account with the company. Remember, you don’t have to be a member to save with the firm, as they offer several non-member accounts too.  

One Response to AA ISA and Savings Account Review

  1. R. C says:

    I tried opening an AA savings account. Paid to get the required certified copies of my proof of Id and indeed the account was opened. However, the AA bank never sent me my account number, sort code or most importantly my security code to enable me to log into my account. I tried telephoning but the agent seemed clueless and though I could transfer money into my account without this information, ugh!? Apparently two letters have now been sent, but where they have gone is anybody’s guess. I have also e-mailed twice, each time receiving an e-mail that my message has been forwarded to the appropriate department. Well, that appears to be a blackhole. It’s a strange bank that doesn’t want my money! Especially as I wanted to put a very large amount into it from the sale of my house. These places can seem fine when they work, but some hiccup in their system and they are useless. Glad I found out before investing any money!

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