Monmouthshire Building Society has launched a 6% variable regular saver account, allowing savers to deposit between £1 and £500 per month for 12 months. If the full £500 is paid each month and the rate remains unchanged, the closing balance would reach £6,194.55, yielding nearly £200 in interest.
Account features and restrictions
The account is designed for those who can commit to regular monthly savings. Withdrawals may be restricted, making it less suitable for those needing frequent access. The account is managed online or in branch; phone or postal management is not available.
Basic rate taxpayers do not pay tax on the first £1,000 of savings income, while higher rate taxpayers have a £500 tax-free allowance. Additional rate taxpayers are taxed on all savings interest.
Alternative savings accounts
Suffolk Building Society offers an Online 1 Year Fixed Rate Regular Saver at 5%, with a minimum opening deposit of £10 and up to £300 per month. Leeds Building Society’s Home Deposit Saver pays 4.80% variable, with a maximum investment of £30,000, aimed at homebuyers. Yorkshire Building Society’s Regular eSaver offers 4.25% variable, with a maximum investment of £3,000 and up to £300 monthly deposits.
