Bank offers ‘excellent’ 5.5% interest rate on regular savings account

Hanley Economic Building Society has launched a new Online Regular Saver this week, which pays 5.50 percent.

Most regular savings accounts require people to put money away each month with interest paid yearly (unless otherwise stated).

Banks offer higher interest rates than traditional fixed or easy-access savings accounts but tend to impose rigid terms and conditions.

This can include things such as limiting the number of withdrawals one can make, forcing people to make a deposit every month and capping how much they can save. And the rate usually only lasts for a year.

Regular savings accounts work well for people looking to start a savings habit, as the terms generally encourage savers to pay money into the accounts monthly.

Hanley Economic Building Society’s Online Regular Saver allows people to put away up to £1,000 per month.

The minimum amount needed to open the account is also £1,000.

Commenting on the deal, Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “Hanley Economic Building Society has launched a new Online Regular Saver this week, which pays 5.50 percent.

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“The account grabs a prominent position in its sector and may attract savers who are looking to save towards a specific goal, as this offer allows them to put away up to £1,000 per month.

Careful planning is wise, as only five penalty-free withdrawals are permitted per year, thereafter withdrawals are subject to a 30-day loss of interest penalty. Overall, this receives an Excellent Moneyfacts product rating.”

Customers are permitted five penalty-free withdrawals permitted per year, any over are subject to 30-day loss of interest penalty.

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Britons need to deposit at least £250 minimum per month or their account will be closed or the balance will be transferred to an Instant Access account, which pays a lower rate, if a payment is missed.

Savers can open and manage their account online. Applicants must be 18 years and over.

An expert previous told the Express that savers should check their savings rate against the best in the market “at least once a week” to make sure they are getting the best rate.

As banks remain competitive, new deals are popping up on the market each day – savers could always find something that pays more interest and offers more cash than the previous week.

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