Ecology Building Society has introduced a new regular savings account paying 6% interest, designed to encourage regular saving while supporting environmentally focused projects.
Account details
The Ecology Regular Saver offers a variable rate of 6% AER over a 12-month term. Savers can deposit up to £200 each month, allowing a maximum of £2,400 over the year. The account can be opened with as little as £10 and is available to UK residents aged 18 or over opening an account in their sole name.
Deposits help fund green and sustainable homes and businesses across the UK, according to the building society. Eligible savings are protected up to £120,000 under the Financial Services Compensation Scheme (FSCS).
How it works
Customers can apply online, via the mobile app, by phone, or by post. Interest is calculated daily and paid at maturity after 12 months. While withdrawals are not normally permitted during the term, customers can close the account early if needed. At the end of the term, the account automatically converts to an Easy Access account with a lower interest rate.
Expert rating
Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said: "Ecology Building Society has launched its new Ecology Regular Saver; this will appeal to savers looking to build a healthy savings habit.
"The account pays a top 10 rate at 6%, for 12 months. Savers can make unlimited deposits, provided they don't breach the maximum £200 monthly investment amount.
"Those making use of the maximum monthly deposits could find themselves with around £2,400 by the time the term ends, however, it's crucial savers review their pots after this term as the account reverts to an easy access account, which pays significantly less.
"Overall, this receives an Excellent Moneyfacts product rating."
Other options
Several banks offer regular savings accounts with higher rates, each with its own conditions.
Bank of Scotland Monthly Saver: Pays 8% AER over 12 months. Open with £25, save between £25 and £250 monthly, up to £3,000. Interest paid on anniversary, withdrawals allowed without penalty.
Lloyds Bank Monthly Saver: Also pays 8% AER. Minimum opening deposit £25, monthly savings £25-£250, maximum £3,000. Interest paid annually, withdrawals allowed.
Santander Regular Saver: Advertises 8% AER, including a 5% bonus for the first 12 months. Open with £1, save up to £200 monthly. No minimum monthly deposit, withdrawals via linked current account.
Zopa Regular Saver: Pays a variable rate of 6.87%, equivalent to 7.10% AER when compounded monthly. Save up to £300 monthly, maximum £1,800. No minimum deposit, withdrawals allowed without penalty.
