first direct offers market leading 3.5% interest rate for regular savers
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first direct currently offers the best interest rate, with its Regular Saver account, at 3.5 percent. Savers have to deposit at least £25 up to £300 each month over a fixed 12-month term. A minimum deposit of £25 is needed to open the account.
A saver who puts away the maximum £300 a month over the 12 months would get a return of £68.25.
Customers can set up and manage the account online, and they can also manage the account through the bank’s mobile app.
To adjust a standing order, a saver will need to call the bank directly.
The account will mature a year after it opened, with the interest then added to the balance.
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Interest is calculated each day.
The maturity process can take up to five days, but interest will continue to be earned during this time.
Savers will not be able to withdraw the funds once they are in the account.
The money can only be accessed once the account has been closed.
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Closing an account before the end of the 12 months will mean that the interest will be paid to date at a rate of just 0.1 percent.
The account can only be opened in the name of one person, with only one account for each individual.
Savers will need to set up a first direct 1st current account before opening a Regular Saver.
New customers switching their current account to first direct can get a £150 bonus, if they pay in at least £1,000 in the first three months.
After the leading rate from first direct, NatWest’s Digital Saver comes in second, with a rate of 3.3 percent.
There is no minimum deposit to open the account, with interest paid monthly.
The 3.3 percent rate applies to balances up to £1,000, with the rate then reducing to 0.3 percent up to £5,000.
Balances over £5,000 will get a 0.2 percent interest rate.
The third best rate is with the Royal Bank of Scotland Digital Regular Saver, also offering 3.3 percent.
Interest is paid monthly and there’s no minimum deposit to set up the account, but savers can only deposit £150 a month.
The Bank of England raised the base interest rate to 1.75 percent earlier this month, with inflation set to hit 11 percent later this year.
Laura Suter, head of personal finance at AJ Bell, said: “Savers are the only winners of any interest rate hike.
“We’ve already seen a rates war break out in the savings market and savers are finally being rewarded for the cash they’ve stashed.”
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