The very ‘best’ savings account at the moment, according to one set of personal finance experts, comes from a building society and offers incredible interest of 7.5%. Many British savers are losing out on hundreds and even thousands by keeping their money in the same savings accounts for many years at a time. Instead, money experts say that savers should always be looking out for better accounts that make their money work harder, so they get more in return.
The interest rate is fixed at 7.5% for six months, so you get those guaranteed earnings at the end of the period. The finance experts at Money Weekly placed this at the top of their latest ranking of regular savings accounts. They picked out this account for people who want to put away small amounts each month, earning as much as they can on those little deposits. They list the Principality Building Society Regular Saver as their current number 1 choice because of its generous six-month fixed term interest rate of 7.5%.
Savers who open this account must fix their cash for the six-month period, and they are allowed to pay up to £200 per month. That means that they can pay £1,200 in total.
Based on the 7.5%, if a person deposits £200 on the day they open the account, and continues to do so every month after that for the six months, their balance would end up being £1,225.93.
You can open the account at a branch, in an agency or online, but you must be 16 or over and be a UK resident. At least £1 must be kept in the account at all times.
Although you do not have to make payments into the account every month, it is best to do so to get the most out of your money.
If your bond reaches £1,200, you cannot pay any more money in, and it will mature 6 months after the date it opened. Plus, you can’t withdraw any money before the bond matures.
However, you can close your bond before it matures, and any money you have earned will be added to your account balance.
While the account certainly suits some, it will not suit those who want to deposit more than £200 every month, those who want to make withdrawals and those who want to save more than £1,200 in total.
Money Weekly listed several other regular savings accounts that also have high interest rates, although none of them is more than 7.5%. For example, the Zopa Regular Saver offers 7.1% AER, while the First Direct Regular Saver offers 7% AER.