Savings update: Good news for Britons as building society offers 1% interest rate

Martin Lewis offers advice on savings and interest rates

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Savings accounts have been hit by the Bank of England’s decision to lower and keep its base rate at 0.1 percent for the foreseeable future. However, despite this, there are still some solid options out there for Britons who are determined to save. Principality Building Society, the sixth largest UK building society, is currently offering a particularly attractive option.

The provider’s One Year Regular Saver Bond is amongst the top regular saver options which are open to all.

The building society explains: “Our One Year Regular Saver Bond may be right for you if you have a regular amount to invest each month and can leave your investment untouched for a year.”

At present, the account is offering a 1.00 percent interest rate to its savers.

This rate is fixed which provides stability and knowledge of what the financial outcome of this account will be after 12 months.

The interest on the account is calculated on a saver’s daily balance and paid on the anniversary of the opening of the bond.

For savers, the minimum balance is £20, but Britons can put in up to £3,000 in this account.

While regular saving is encouraged, individuals do not need to pay into their bond every month.

The building society states multiple monthly deposits will be allowed, as long as these do not exceed £250 – the monthly limit.

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To open this account, individuals are required to be aged 16 or over and resident in the UK for tax purposes.

It is worth noting the bond can be held in multiple names, but a person is not permitted to have more than one bond in their name.

This bond can be opened in a variety of ways, including in branch, agency, online or by post.

It can also be managed in the same ways, to  create ease for savers across the country.

However, while the interest rate is an attractive one in the current climate, Britons should be aware of the access rules when it comes to their money.

Principality have explained individuals will not be able to make any withdrawals prior to maturity of the account.

These means people should be prepared to temporarily part with the money they save into this account, and shouldn’t leave themselves short financially.

Before the bond reaches the end of its term, Principality has said it will write to savers to let them know what they can do with their money.

Otherwise, savers can expect their balance to be transferred into the building society’s Instant Access Account, or its nearest equivalent.

Although this building society may be less familiar to Britons, it is still a safe option.

This is because it is accredited by the Financial Services Compensation Scheme (FSCS).

The FSCS ensures that if the worst should happen, such as a financial provider going to the wall, that all funds up to a value of £85,000 are protected.

This provides savers with immense peace of mind and security that their money is in the right place. 

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