For savers who want to stow away just a few hundred pounds per payday for a rainy day for a year, and need the flexibility to withdraw cash, Progressive Building Society is offering a savings account with a 7% AER.
Interest on the Rainy Day Saver Account is paid on the anniversary of opening the account, so you have to be reasonably patient. You can deposit up to £300 per month. So the estimated balance after the 12 month term, based on a deposit of £300 per month, would be £3,737.68. This assumes the interest rate does not vary during the 12-month period.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “A regular savings account is a good choice to instil the savings habit, as many of these accounts require savers to put money away every single month.
“The Rainy Day Saver from Progressive Building Society is highly attractive and a great choice for savers looking to build a nest egg over the year. The account does pay a variable rate, so this can change during the year, but they will notify within 14 days if that’s the case. As the Bank of England base rate is largely expected to be cut this month, this rate could fall by the same amount, but it would still be offering a decent return on monthly deposits.”
Rachel said: “Unlike other regular savings accounts, this account allows unlimited withdrawals, but only one per day. This will be incredibly useful for savers who need quick access to their cash. However, the amount someone can save is maxed out at £300 per month, so those looking to save more will need to consider opening a separate account.
“As an alternative, easy access accounts provide the most flexibility with deposits, but it’s vital to check any terms and conditions carefully,” she added.
“It might feel a bit pointless to only save a little bit every month, but it’s an essential habit to better reach future goals. Saving little and often is key, and there are plenty of saving accounts on the market offering decent returns and can offer flexibility.”
“It can seem a little confusing to pick the right savings account, and the best choice doesn’t just mean the highest rate. If savers want flexibility, then they can pick an account that allows them to access their cash. However, if they can leave it untouched for a few months, they could get a more generous interest rate.”
The account can only be opened and managed online www.theprogressive.com. The account is available to existing Members and new customers resident in the UK, aged 18 or over.