A market-leading savings account paying 8% has launched from Saffron Building Society – though not everyone can get it and you can only pay in a small amount each month.
The Members’ Month Loyalty Saver is an account for existing members of the building society and offers a rate over three times the level of inflation – with this sitting at 2.3 per cent.
Savers can also only pay in £50 per month maximum and will get the interest when the account matures after a year.
If you paid in the maximum amount of £50 every month, you would make a maximum of £30 in interest on the £600 you would have paid in.
You can open the account online or in one of Saffron’s branches across the East of England.
What other ‘regular saver’ accounts are available?
There are other “regular” saver accounts – accounts where you can pay in cash up to a maximum amount each month, on the market wth good rates.
Though none beat 8 per cent, there is a regular saver from First Direct which pays 7 per cent and lets you deposit £300 per month, so if you have the ability to put away more cash, you will make more money in interest.
The Co-Operative Bank also has a regular saver that allows you to deposit £250 per month and pays 7 per cent.
Regular saver accounts often require you to have a current account with the bank you open the savings account with, so always check first.
Would a more typical savings account be better?
Normal savings accounts pay worse rates than regular savers but allow you to deposit more money, and all in one go.
The best accounts pay under 6 per cent and there have been warnings rates will fall further.
Writing for i about whether a regular saver or typical savings account is better, Anna Bowes of the Savings Champions website has said of regular savers: “Be aware that headline rates can be misleading and you need to be engaged and inventive to really make the most of them.”
You can read her full reasoning here.
