AA drives into savings market

British motoring group the AA announced today it was moving into the savings market with the launch of a new telephone account.

The group’s instant access Telephone Savings Account will pay interest at 5.11%, including an introductory bonus of 0.7%, and requires a minimum deposit of £500 (€749).

The AA already offers car loans and a credit card, and acts as an insurance broker for home, motor and travel cover.

Lloyd East, director of AA Personal Finance, said: “A savings account is the obvious next step in broadening the financial services we offer customers.

“The new AA account will be very attractive to those who realise their present savings are being eroded in a low-interest account.”

The account, which is being offered in partnership with Birmingham Midshires, can be opened from tomorrow by calling 0800 917 4705, or by visiting the AA’s website on www.theAA.com.

Earlier this month energy group Centrica announced it was selling the AA to venture capitalists CVC and Permira for £1.75bn (€2.6bn).