Five top paying savings accounts – earn up to 7.5 per cent
Savings accounts are staging a fiery comeback as UK providers battle to attract customers.
With the cost-of-living still rumbling on and interest rates beginning to shift, there’s prime opportunities to put money to work.
A number of top accounts have upped rates in recent months – some over seven per cent – helping in a bid to get competitive and help customers grow cash with minimal risk.
Here are the top five regular savings accounts, as found by consumer champion Which?, to maximise interest:
Principality Building Society – 7.5 per cent
Welsh-based mutual Principality Building Society tops the pack with a 7.5 per cent annual equivalent rate (AER) – which refers to the total interest earned on a savings account over a year.
The building society’s six month regular saver issue 3 account allows customers to lock down cash for half the year providing an incentive for consistent saving. It builds on previous issues with a hefty interest rate to lure in customers.
The account comes with a maximum monthly deposit of £200 per calendar month and a total deposit limit of £1,200 for the period.
The opening deposit can be as low as £1.
Zopa Bank – 7.1 per cent
UK fintech darling Zopa Bank comes in second with an AER of 7.1 per cent.
The regular saver account can be opened via Zopa’s mobile app and has a maximum monthly deposit of £300.
The digital bank, which debuted in 2005, has ramped up its offering in the last few months to take the competition to Britain’s lending giants.
Zopa also has a free-to-open current account, dubbed Biscuit, which the company says can be opened in minutes via its app.
First Direct – 7 per cent
Shortly behind Zopa is HSBC-owned First Direct, with a regular savers account at seven per cent.
The account can be opened online and has a minimum monthly deposit of £25. The maximum monthly injection is £300.
Payments are made through a standing order and must remain the same once set up, with only one payment per month.
Customers can’t make any withdrawals with this account and it can only be accessed after 12 months.
The Co-operative Bank – 7 per cent
The Co-operative Bank hiked its offering in the savings battle earlier this year to seven per cent.
The firm’s regular saver is exclusively for eligible current account holders. Customers can save up to £250 a month over 12 months, with flexible access to your money if needed.
There’s no minimum monthly deposit, and you can open the account with just £1.
Interest is paid annually, and the account converts to an instant-access saver after a year regular
Nationwide Building Society – 6.5 per cent
Nationwide’s Flex Regular Saver pays a variable 6.5 per cent AER for one year to qualifying current account holders.
Savers can deposit up to £200 per month, with interest paid at the end of the term.
The top rate applies if no more than three withdrawals are made during the year; otherwise, it drops to 1.25 per cent AER. The account must be opened and managed online.
After 12 months, the balance is moved to an instant access savings account.