Loughborough Building Society has launched a new regular savings account paying 5.6% interest, earning an “excellent” Moneyfacts rating.
People can deposit up to £250 a month into the mutual’s Holiday Monthly Saver, and interest is paid annually on May 31. Up to £3,000 can be invested until the account matures on May 31, 2026.
Regular savings accounts typically offer higher interest rates, and the terms encourage savers to pay money into the accounts monthly. To earn interest, savers just need to meet certain requirements on the respective accounts, which generally involve making minimal withdrawals and regularly depositing.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Loughborough Building Society has launched its new Holiday Monthly Saver this week, which pays a competitive 5.60%.
“The account grabs a position in the top tables for its sector and may attract savers looking to save towards a specific goal, as this offer allows them to put away up to £250 per month.”
Ms Eastell noted that contributions can be amended, which may be “a bonus for some”. However, she warned: “It would be wise for savers to consider withdrawals carefully, as earlier access is only permitted on account closure after one withdrawal per year.
“Overall, this receives an Excellent Moneyfacts product rating.”
While Loughborough Building Society may offer an appealing deal, it isn’t quite topping the table for regular savings accounts.
Principality Building Society takes the top spot with an Annual Equivalent Rate (AER) of 8%. The account’s term is just six months, and up to £200 can be invested per month. The account can be opened with a minimum deposit of £1, and interest is paid on maturity.
The online-based digital bank first direct offers an AER of 7%. The rate is fixed for 12 months, and savers can get started with £25. Interest is calculated daily and paid on account maturity one year after opening. Savers can deposit between £25 and £300 per month in multiples of £5. Withdrawals are not permitted throughout the 12-month term.
The Co-operative Bank also offers a 7% AER on its Regular Saver Issue One. Savers can deposit up to £250 a month, and up to £3,000 can be invested in the account over the 12-month term. Interest is paid on maturity, and withdrawals are permitted without penalty or notice.
