A UK building society has launched a competitve new savings interest rate, offering customers an impressive 7% return on money stashed away. Several savings account providers have upped their game in recent months, offering increased interest rates as the market gets more competitive. The Tipton and Coseley Building Society’s increase to 7% makes it one of the highest rates on the market, and it is being offered to mark 125 years of the building society.
The high rate is available for only a limited period and comes with a variable rate available to those with a B, DY, WS or WV postcode (all located in the West Midlands), and applies from June 17, 2026. Interest is calculated daily and paid annually on 31 July and at maturity.
It is suitable for those who put relatively small amounts away every month, as there is a £125 monthly limit.
It is an instant access account and available to those aged 16 years and older. “We may increase or decrease the interest rate at any time,” the society warns.
For those in the dedicated postcodes who want to maximise up to £125 every month, there are considerable earnings to be made. Based on the 7% variable rate, with an initial deposit of £125 and 12 further deposits of £125.00 being made on the first day of each month, the estimated final balance is £1,691.78.
This estimation assumes that the account is opened on July 1, 2026, and no withdrawals are made during the 12-month period. It also assumes that there is no change in the interest rate.
To open a savings account, customers can visit any of Tipton’s branches. Joint accounts can be opened, but only one account can be opened per customer.
After opening the account, savers can make multiple deposits throughout the month, but the combined amount cannot exceed £125.
Customers also have 14 days to decide if the account is for them. If they close it within that period, they can get their money back without being charged.
There are several attractive savings rates on the market at the moment. In fact, Lloyds Bank recently launched a bumper 8% regular savings account that lets customers earn £120 in a year. Savers can deposit up to £250 every month in the Lloyds Monthly Saver, meaning you would have a maximum balance of £3,120 after the 8% interest is paid.
Meanwhile, The Bank of Scotland also offers a regular savings account with an interest rate of 8% AER. As it’s a part of Lloyds Banking Group, the same account conditions apply.
Santander also offers a regular savings account with an interest rate of 8% AER. It includes a 5% AER bonus for one year, and allows customers to put up to £200 away per month.