The AA will introduce a guaranteed equity bond and a one-year fixed rate account later in the week.
With a minimum investment of £500 and a five-year term, the guaranteed equity bond allows investors to benefit from growth in the stock market.
Under its terms, if the FTSE 100 grows, savers will benefit from 80 per cent of the growth. It also ensures the investors a minimum return of 15 per cent.
Lloyd East, director of AA personal finance, said the company was looking to provide the same safe and reliable service for savers as it already does to its motorists.
"We offer the best of all worlds - easy access for everyday savings needs, a bond for medium term saving with potential for high returns and a fixed rate account that allows customers to guarantee their returns," he added.
The one-year fixed rate account will be launched at 5.17 per cent per annum interest rate.
The account holders will have the option to receive their interest in their accounts or monthly as income.
The AA had entered the savings market last year in July by introducing a best-buy telephone savings account followed by an Internet version of the same.
AA gives savers more options
AA gives savers more options
Tue, 05 Apr 2005
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