Building society offers 5.5% interest on limited edition account

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The current economic climate is shaping up much better for savers, as banks and building societies have been offering some of the highest rates of interest seen in over a decade to reflect the Bank of England’s Base Rate hikes. Monmouthshire Building Society is currently topping the regular savings interest rates leaderboard with its one-year regular savings account.

Regular savings accounts are viewed as a good option for those looking to start building up a savings pot. These accounts typically offer some of the highest interest rates on the market and the terms generally encourage savers to deposit cash into the accounts monthly.

Savers simply have to meet certain requirements on the respective accounts and they’ll earn interest on their savings, mainly on the basis they make minimal withdrawals and deposit regularly.

Monmouthshire BS’ Christmas Saver Bond (Issue 5) is currently offering a one-year fixed bond with a 5.5 percent Annual Equivalent Rate (AER).

A minimum deposit of £10 is required to open the account and up to £2,400 can be invested over the course of the year.

The account allows up to £200 to be deposited per calendar month and withdrawals are not permitted until October 1, 2023. If the account is closed before this date, it will not qualify for the 5.5 percent AER and instead, will earn interest calculated at 0.2 percent AER.

The fixed term starts on the date the account is opened and interest is calculated on a daily basis on the balance in the account and paid on maturity.

It must also be noted that as this is a limited-issue bond it can be withdrawn by the Society without notice at any time. The account is available to UK residents, excluding Northern Ireland, aged 16 or over.

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While this account currently offers the highest returns available for a regular savings account, competition isn’t too far behind.

Lloyds, Natwest, and the Royal Bank of Scotland are each offering attractive rates exceeding five percent on their respective regular savings account.

Lloyds Bank’s Club Lloyds Monthly Saver is offering an AER of 5.25 percent.

A £25 deposit is required to open this account and the term runs for 12 months, which means up to £4,800 can be invested over the course of the year.

The account is available to Club Lloyds customers and unlimited withdrawals are permitted without penalty. The interest rate is fixed and will be paid on the anniversary of the account opening, and deposits between £25 and £400 must be invested before the 25th of every month.

NatWest’s Digital Regular Saver falls just behind with an AER of 5.12 percent.

The 5.12 percent interest rate is awarded to savings up to £1,000, after which a one percent and 0.5 percent will be awarded to figures from £1,001 to £5,000, and £5,001 and over, respectively.

There is no minimum deposit required to open the account and it allows people to save up to £150 each month. Unlimited withdrawals are also permitted without penalty and interest is awarded monthly.

Royal Bank of Scotland’s Digital Regular Saver is also offering an AER of 5.12 percent.

Like NatWest, the same interest rules apply to this bank account (5.12 percent paid up to £1,000, then one percent and 0.5 percent), interest is applied monthly, and unlimited withdrawals are also permitted.

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