A new regular savings account paying 6.75% for “loyal” customers only has been launched by a building society.
The loyalty regular saver (2) account may be opened by savers who have been members of Coventry Building Society continuously since at least January 1 2023.
The account lasts for 12 months and savers can deposit up to £250 each month.
Withdrawals are allowed, subject to a charge equal to 30 days’ interest on the amount withdrawn.
Jonathan Wilson, senior savings propositions manager at Coventry Building Society, said: “We’ve kept the minimum balance at just £1 and there’s no limit on the number of times savers can put money in over the year, as long as it doesn’t exceed £250 in a month.”
It’s important to be aware of the workings of a regular savings account versus an easy access account, as flexibility with deposits and the interest earned can be rather different
Rachel Springall, Moneyfactscompare.co.uk
After 12 months, the account will mature into a variable rate easy access saver, which currently pays 3.10%.
The Society also offers a regular saver at 5.00% for those who do not qualify for the loyalty regular saver.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “A variable rate of 6.75% is highly attractive, and the account offers flexibility with the monthly payments, so it’s a great addition to the range of deals Coventry Building Society offer to reward their loyal members.”
Ms Springall added: “Gatehouse Bank currently pay 7.00% variable annual profit rate on its regular saver account which accepts payments of up to £300 per month for a year, it does not allow access to funds (for a 12-month period), but savers can skip deposits.”
She added that the Co-operative Bank offers a variable rate of 7.00% on its regular saver issue one.
Ms Springall added: “The right savings account always comes down to someone’s specific needs, so it’s important to be aware of the workings of a regular savings account versus an easy access account, as flexibility with deposits and the interest earned can be rather different.
“Savers with a fixed-term regular savings account must make a diary note to review their savings pot after a year and move their cash elsewhere to ensure they are earning a decent return of interest.”
