Monmouthshire Building Society is offering a competitve 6% interest savings account where customers could earn nearly £200 in a year. The regular saver allows Brits to put away between £1 and £500 a month over 12 months while earning a variable rate.
If account holders pay £500 into the account each month for a year, and the interest rate doesn’t change, the closing balance would be £6,194.55, representing earnings of nearly £200. Since it is a regular saver, withdrawals may be restricted, so if you need frequent access, it may be better to consider easy-access options instead.
If you’re a basic rate taxpayer, you won’t have to pay tax on the first £1,000 of savings income you earn. For higher rate taxpayers, the first £500 of savings income is tax-free. Additional rate taxpayers have to pay tax on all their savings income.
The account could suit savers who want to invest small and regular amounts over a 12-month fixed term, and they have between £1 and £500 available to open the account.
You must manage the account online or in branch, so anyone who wants to manage their account over the phone or by post would not be able to access the services.
Suffolk Building Society is offering an Online 1 Yr Fixed Rate Regular Saver at 5%, which could suit you if you want to avoid the unknown of a variable rate. The minimum opening amount is £10, and you can deposit up to £300 a month.
Leeds Building Society has a Home Deposit Saver at 4.80% variable. The maximum investment is £30,000, and unsurprisingly, it is aimed for savers wanting to buy a home. It reverts to an Access Saver if more than one withdrawal is made.
Yorkshire Building Society’s Regular eSaver is paying 4.25% a variable rate. This has a lower maximum investment than Monmouthshire at £3,000, with savers allowed to pay in a maximum of £300 each month.