Skipton Building Society is offering a top rate of 7.5 percent gross pa/AER on its regular savings account, and people can get started with just £1.
The Member Regular Saver (Issue Two) is available to Skipton members who joined on or before May 31, 2023.
Regular savings accounts work well for people looking to start building up a savings pot. These accounts typically offer some of the highest interest rates on the market and the terms generally encourage savers to pay money into the accounts monthly with limited withdrawals.
Savers can invest up to £250 per calendar month and interest is calculated daily and paid annually on the anniversary of the account opening.
The account can be launched and managed online, over the phone, by post or in a branch by eligible members aged 16 or over.
Partial withdrawals are not allowed, however, people can close their account at any time and withdraw the full balance without penalty.
The account will mature after 12 months, meaning savers can invest a maximum of £3,000 across the year overall. To provide an example of the interest a pot this size will amass, the estimated balance at the end of the fixed term would be £3,121 – based on monthly £250 deposits and no withdrawals.
Skipton may be offering one of the top rates available, but fortunately for non-eligible members, the competition isn’t too far behind.
Online bank first direct is offering an Annual Equivalent Rate (AER) of seven percent for up to £3,600 per year. The rate is fixed for 12 months and Britons can get started with just £25.
Savers must have a first direct current account and interest is calculated daily and paid on maturity exactly one year after opening. Savers can deposit between £25 and £300 per month in multiples of £5.
Withdrawals are not permitted throughout the duration of the 12-month term. In the event of this, the account will have to close and interest will be paid up to the closure date at the Savings Account variable rate instead.
Lloyds Bank’s Club Lloyds Monthly Saver places just behind, followed by NatWest and the Royal Bank of Scotland’s Digital Regular Saver with AERs of 6.25 percent and 6.17 percent, respectively.
A £25 deposit is required to open the Club Lloyds Monthly Saver and the term runs for 12 months, which means up to £4,800 can be invested over the course of the year.
The account is available to Club Lloyds customers and unlimited withdrawals are permitted without penalty. The interest rate is fixed and will be paid on the anniversary of the account opening, and deposits between £25 and £400 must be invested before the 25th of every month.
Savers can benefit from the 6.17 percent interest rate on deposits of up to £5,000 with NatWest and RBS’s Digital Regular Saver, after which a 1.75 percent rate will be awarded to figures from £5,001 and over.
There is no minimum deposit required to open the accounts and it allows people to save up to £150 each month. Unlimited withdrawals are permitted without penalty and interest is awarded monthly.
