Northern Rock today launched its new fixed rate Regular Saver account, which at 5% pays one of the best rates around for a regular savings account.
With the Bank of England base rate still at a record low of 0.5%, an account paying 5%, fixed until 1 June 2011, looks particularly attractive. However, it’s a regular savings account, and you can only put in a maximum of £250 per month (£3,250 over the 13 month term of the account). You earn the interest on an increasing balance, so the maximum you could earn over 13 months is £87.66 if you paid in the maximum possible and didn’t make any withdrawals.
The account can be opened with a minimum initial deposit of £1 and you can save as much as you like each month, up to the maximum of £250. If you need access to your money, you can make withdrawals without giving any notice or incurring a fee.
Finding the best account
If you want to save a regular amount each month then this could be the account for you, as it pays one of the best regular savings rates around. If you have a lump sum to save, however, you could be better off with an instant access account or – if you don’t mind tying your money up for a year or more – a fixed rate bond. Use our savings account comparison tool and our fixed rate savings account comparison tool to find the best account for you.
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