Hanley Economic Building Society has introduced a new regular savings account offering an interest rate of 6.3%, targeting savers who prefer to deposit money consistently over time. The 1 Year Branch Smart Saver account is now available to customers, with a maximum balance of £3,600 and an opening deposit requirement of just £25.
Account Features and Restrictions
The account is designed to encourage disciplined saving, permitting only two withdrawals per tax year without penalty. Any additional withdrawals incur a 30-day loss of interest on the amount withdrawn. Customers can withdraw up to £500 in cash or £70,000 by cheque on demand from branches, while larger cash sums of up to £5,000 require at least 24 hours' notice.
Rachel Springall, finance expert at Moneyfactscompare.uk, described the account as "highly attractive" and a "great choice" for those aiming to save up to £3,600 over 12 months. She noted that regular savings accounts like this one help instil a savings habit by limiting access to funds.
Interest Rate and Market Context
The interest rate on the account is variable, meaning it may change over time. This launch comes as the Bank of England holds its base rate at 3.75% for the fourth consecutive time, keeping savings rates relatively elevated. The base rate remains at its lowest since February 2023, influencing mortgage, credit card, and savings rates for millions.
Upon maturity, the balance in the 1 Year Branch Smart Saver will be transferred to a variable-rate Instant Access savings account offered by the society.
Expert Advice on Savings Habits
Springall emphasised the importance of saving "little and often" to reach future goals, even if the amounts seem small. She advised savers to consider their need for flexibility when choosing an account, noting that easy access accounts offer the most flexibility but may have withdrawal restrictions. She urged consumers to carefully review terms and conditions to ensure they benefit from the full interest rate.
To open the account, customers must visit a Hanley Economic Building Society branch; online or postal applications are not accepted.
