A building society is currently offering a competitive savings account paying 6.3% interest, which can be opened with just £25. The Hanley Economic Building Society’s One Year Branch Smart Saver is a variable rate account designed for customers who want to grow their savings steadily over 12 months. The savings account offers a variable interest rate of 6.30% AER on balances of £25 and above, and interest is calculated daily and paid annually at the end of August or when the account reaches maturity.
The account allows customers to deposit between £25 and £300 each month, with a maximum balance of £3,600 over the year. Based on the current rate, someone saving £100 a month could expect to build a pot of around £1,241.75 after 12 months, assuming no withdrawals and no changes to the interest rate.
The account must be opened in a branch by UK residents aged 18 or over. Once opened, it can be managed either in a branch or by post, with deposits accepted via branch visits, standing orders, post, or internal transfers from existing Hanley accounts.
Only one Branch Smart Saver is permitted per customer. Savers can make two withdrawals per tax year without penalty, but any additional withdrawals will result in 30 30-day loss of interest on the amount taken out.
Savers can withdraw up to £500 in cash or £70,000 by cheque on demand at any branch, or by sending signed instructions by post.
Larger cash withdrawals of up to £5,000 are available with at least 24 hours’ notice, while cheque withdrawals over £70,000 can be arranged through the society’s Registered Office. However, a minimum balance of £25 must remain in the account.
As the interest rate is variable, Hanley Economic Building Society may change it if necessary, although customers will be given at least 14 days’ notice before any reduction takes effect.
If no deposits are made for three consecutive months, or if multiple monthly payments are missed during the society year, the account may be closed following notice.
At maturity, the balance will be transferred automatically into a variable rate instant access savings account with the society. As with all savings products, tax may be payable on interest earned depending on individual circumstances and the Personal Savings Allowance.
The account is likely to appeal to savers who want to save between £25 and £300 on a monthly basis, are comfortable with a variable rate, and prefer face-to-face banking. It may be less suitable for those seeking a fixed return, unlimited penalty-free access, or a fully online savings experience.