offers a market-leading interest rate on its regular account for savers looking to kick off the year with higher returns. Regular savings accounts usually require monthly deposits, making them ideal for disciplined savers who want to build their savings over time while earning higher interest than standard accounts.
Despite recently reducing its interest rate from 8% to 7.5%, Principality's six-month account is still topping the table, and interest paid on maturity. Savers can contribute up to £200 per month, growing their balance to a total of £1,200, with no withdrawals allowed until the account matures.
How does the account compare?
While Principality Building Society offers a leading 7.5% Annual Equivalent Rate (AER), its six-month term limits the total interest earned. With a maximum monthly deposit of £200, savers will accumulate £1,225.81 by the end of the term, including £25.81 in interest.
In comparison, First Direct offers a 7% AER over a 12-month term, with a higher deposit limit of £300 per month, allowing savers to invest up to £3,600 in total. At the end of the year, savers will have £3,736.50, including £136.50 in interest.
While the interest rate is slightly lower, the longer-term and higher deposit cap make it a better option for those looking to save more.
The Co-operative Bank also offers a 7% AER on its Regular Saver (Issue 1) for a 12-month term.
Savers can invest up to £250 per month, building total savings of up to £3,000, and can earn up to £114.21 in interest. This account also offers more flexibility, as people can make withdrawals without facing a penalty.
Savings interest rates are declining following the Bank of England's decision to cut central rates last month. Britons are being urged to act fast to secure accounts with the top returns now before they fall even further.
Rachel Springall, Finance Expert at , said: "Now is an ideal time for savers to consider grabbing a fixed rate deal so they can get a guaranteed return on their cash.
"They may wish to act soon, as we have had a variety of providers cutting fixed rates across bonds and ISAs over the past week, some of which were market-leading."
