How to earn over 10% in a savings account

A guaranteed annualised return of over 12% may seem unrealistic too many. It may seem the only realistic way to achieve such a return is by dabbling in the stockmarket, even then, we all know the risks and the uncertainties associated with investing in the stockmarket, especially over the short run.

Several banks have introduced a scheme that provides a hefty return on monthly savings that is paid out at the end of the year. The accounts require a monthly instalment paid in for a whole year, though the Lloyds account runs for two years. The returns are anywhere between 8 and 12.5%.

Barclays

Barclays banks is offering its current account holders a staggering 12.5% on savings through this scheme. No, you haven't heard that wrong! It really is giving out a guaranteed 12.5% return on savings. But, there is an important proviso for anyone to qualify.

To qualify for this account, a customer has to meet a few guidelines:

• An existing holder of a current account that requires payment of £1000 a month in the form of a salary.
• The account is flexible as it allows savers to vary the amount they stack each month.

Alliance Leicester

Alliance & Leicester also offers a similar scheme with an account called Premier Regular Saver that offers its saver 12%. Their account is much more rigid in that amount put saved every month cannot is constant. For more information on the Premier Regular Saver account.

• The account does not allow any withdrawals
• A maximum of £3000 can be saved over 12 months

Lloyds

Lloyds Bank offers 8% for a similar account with savers required to pay in between £25 and £250 a month. The savers can top up with $500 upon opening the account.

• One big advantage of the Lloyds account is the flexibility in the amount saved. The account holder can save anything between $50 and $250.

The scheme runs for two years unlike the other two, both of which is a 1 year scheme.