Melton Building Society has launched a new regular savings account with an “attractive” six percent interest rate.
The account is available from today and marks the start of UK Savings Week, an initiative that takes place every September to encourage people to take control of their finances and prioritise saving.
Regular savings accounts can be a good option for those looking to get into a savings habit, as these accounts typically offer higher interest rates and the terms generally encourage savers to pay money into the accounts monthly.
Savers can invest up to £200 per month in Melton Building Society’s Regular Saver 6 and interest is applied annually.
There is no minimum deposit required, and unlike typical “regular” savings accounts, withdrawals are allowed at any time during the term. However, once funds are withdrawn, they cannot be replaced by additional deposits, meaning withdrawals do not reset the deposit limit.
Will Bell, product manager at Melton Building Society, commented: “We’re delighted to be able to offer our Regular Saver 6 product to the market.
“As a mutual building society, we recognise the importance of saving little and often, and in celebration of UK Savings Week we hope to support those who want to do that with this product.”
Mr Bell added: “With the flexibility to be able to withdraw and miss monthly contributions without impacting the attractive six percent rate, it’s ideal for both those new to the savings habit and seasoned savers.”
While Melton Building Society may be offering a more appealing rate, it isn’t quite taking the top spot. Principality Building Society offers an Annual Equivalent Rate (AER) of eight percent. The term of the account runs for 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 Dirst Direct falls just behind with an AER of seven percent. The rate is fixed for 12 months and people can get started with just £25. Interest is calculated daily and paid on account maturity exactly one year after opening.
Between £25 and £300 can be deposited per month in multiples of £5, but withdrawals are not permitted throughout the 12-month term. In this event, the account will have to close and interest will be paid up to the closure date at the Savings Account variable rate instead.
The Co-operative Bank joins the top two, also offering a seven percent 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.
For those looking for a new way to save some cash, we round up the top-rate savings accounts every week, from easy access to Cash ISAs.
