Highest-yielding savings accounts available - potentially earning as much as 7.5% interest rate
In the midst of the ongoing cost-of-living crisis in the UK, savings accounts are experiencing a resurgence, with several top providers increasing their rates to attract savers. The current top regular savings accounts offer interest rates up to 7.5% AER, with specific conditions varying by provider.
Principality Building Society Regular Saver
Principality Building Society offers a competitive 7.5% AER on its Regular Saver account. This fixed-rate account has a six-month term, with a maximum monthly deposit of £200 and a total deposit limit of £1,200. Anyone can apply, and the account requires a minimum balance of just £1. However, no withdrawals are allowed during the term, and early closure is permitted without penalty, with interest paid on the balance.
Zopa Regular Saver
Zopa Bank's Regular Saver account offers a slightly lower 7.1% AER, but it comes with additional benefits. To be eligible, you must hold Zopa's Biscuit current account. You can save up to £300 a month, and the account offers no fees on overseas spending and additional cashback benefits with the current account.
First Direct Regular Saver
First Direct's Regular Saver account offers a 7.0% AER, but it is available only to existing First Direct customers who usually hold a current account. The account may offer fixed or variable terms, and monthly deposit limits typically range up to £500.
The Co-operative Bank Regular Saver
The Co-operative Bank's Regular Saver account offers a 7.0% AER with variable rates. To open the account, you must have a Co-operative Bank current account. Monthly deposit limits apply.
Monmouthshire Building Society Regular Saver
For those seeking fewer restrictions, Monmouthshire Building Society offers a Regular Saver account with a 6.0% AER. The account is open to all, and saving £300 a month for 12 months yields around £117 in interest.
Many other top offers come with eligibility restrictions such as needing to be an existing customer, having a current account with the provider, or residing in certain postcodes. Around 40% of regular saver deals have such opening conditions.
When choosing a regular savings account, consider whether you meet the eligibility criteria and if the account's term and deposit limits suit your regular saving habits. For the most accurate and up-to-date interest rates and detailed terms, checking provider websites or using savings comparison tools like Which? or MoneySavingExpert regularly is advisable, as rates and conditions fluctuate often.
- Given the resurgence of savings accounts, one might consider investing their personal-finance in competitive regular saver accounts like the Principality Building Society's, which offers 7.5% AER, or the Zopa Bank's, providing 7.1% AER with additional benefits.
- To maximize returns from personal-finance savings, it's essential to understand and adhere to the specific conditions for individual regular saver accounts, such as deposit limits and eligibility requirements, seen in providers like First Direct or The Co-operative Bank.
