Building society offers bumper 8% interest rate on savings account

Principality Building Society is offering a market-leading 8% interest rate on its regular savings account.

Regular savings accounts typically offer higher interest rates and the terms generally encourage savers to pay money into the accounts monthly.

To earn interest, savers just need to meet certain requirements on the respective accounts, and this generally involves making minimal withdrawals and depositing regularly.

Principality’s Six Month Regular Saver (Issue Two) can be opened with a minimum deposit of just £1 and up to £200 can be invested per month.

This allows savers to accumulate £1,200 overall, and with the current Annual Equivalent Rate (AER) of 8%, the total pot is estimated to grow to £1,227.53 upon maturity.

Withdrawals are not permitted until the term ends, at which point interest is paid on the balance.

Savers must be 16 or over and UK residents, and the account can be opened online, at an agency or in a branch. Deposits are protected by the Financial Services Compensation Scheme (FSCS).

While Principality may be offering the top interest rate in the regular savings account sector, people may be able to accumulate more interest with a slightly lower-paying account.

Digital bank first direct is offering an AER of 7% for 12 months on deposits of up to £300 per month.

This would allow savers to accumulate £3,600 overall, and with the current AER of 7%, the total pot is estimated to grow to £3,736.50 upon maturity.

Savers can open this account through the app with a minimum deposit of £25, provided they hold a first direct 1st Account. A standing order from the 1st Account to the Regular Saver must also be set up.

Withdrawals are not permitted until the account matures after 12 months.

Principality joins first direct with another savings account with an AER of 7% – its Christmas Saver 2025. The account runs for 12 months and up to £1,500 can be invested in total.

Savers can deposit between £1 and £125 per month and withdrawals are not permitted until the account matures.

The Co-operative Bank is also offering an AER of 7% on its Regular Saver (Issue One). The account runs for 12 months and up to £3,000 can be invested overall.

Savers can deposit up to £250 a month and withdrawals are not permitted until the account matures.