No big deal from the Pru
Sunday 29 September 1996
Its new telephone banking arm has launched two savings accounts and a range of mortgages, and expects to add cheque accounts and credit cards.
The Pru is offering an interest-rate guarantee on its savings accounts until the end of 1997 - that rates will be better than the average of those paid by the 10 largest banks and societies on branch-based accounts of a similar type. But this still leaves its rates looking unimpressive and ignores comparisons with higher-paying postal accounts, even though the Pru's new accounts are in effect postally operated themselves.
Its High Interest Deposit account - an instant-access postal account - pays from 3.1 per cent and has a minimum balance of pounds 500. But even on pounds 5,000 it only pays 3.25 per cent, well below the rates on many postal accounts. Its 60-day Notice Account pays 3.85 per cent on the pounds 2,000 minimum, but on pounds 5,000, for example, this only rises to 3.95 per cent - and to get even these rates savers are limited to just two withdrawals a year.
Direct Line, the telephone-based insurer which has also moved into savings accounts, pays 4.5 per cent to balances of pounds 500 and 4.75 per cent on pounds 5,000 in its own instant-access account.
The Pru has also launched fixed- and variable-rate mortgages dismissed as "not the best, but not the worst" by one broker. But it has promised a "clean sweep" on hidden charges. In particular, mortgage overpayments and one-off repayments will be credited immediately.
q The banking arm of Scottish Widows is offering cheap loans against the value of most endowment savings policies. The current rate is 9.11 per cent.
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
- 5 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...