Saver of the month: Cheshire BS 5% regular saver

piggy bank held in hands

Cheshire Building Society's Platinum Monthly Saver Issue 5 offers savers a guaranteed 5% AER until 30 September 2013. It's currently the top-paying regular saver on the market that's open to all new customers without any caveats.

There are some other regular savings accounts offering better interest rates but they are usually only open to existing current account customers. For example, First Direct has a regular saver that pays 8% to all current account holders. Similarly, HSBC's pays 6% but it is only open to customers with its paid-for current account.

As with all regular savings accounts, to get the rate offered by Cheshire Platinum Monthly Saver you need to make regular monthly contributions - you can put away between £100 and £500 each time.

Only one withdrawal is allowed and if you miss a deposit you will be penalised and only receive 1% interest for the remainder of the 12-month term.

The account can only be opened and operated in branch and interest is paid at the end of the 12 months. At this point the interest rate drops to a miserly 1% so you will need to move your money if you want to carry on earning a high rate of interest.

For more information and to find your nearest branch go to Cheshire BS's website at

Your Comments

  1. How does this work out interest wise for the year on the maximum monthly contribution per month ?, its obviously not 5% on the final total of £6000, as the maximum is £500 per month on an ascending total per month

Based on 500 going in every month, then you will receive a total of about 2.7% on the 6000 invested over 12 months (£162.48 ish) ... so not worth the bother really IMO :)

Based on 500 going in every month, then you will receive a total of about 2.7% on the 6000 invested over 12 months (£162.48 ish) ... so not worth the bother really IMO :)

It works out at roughly 2.5% over a year.
So why not open a 2.5% account that doesn't limit the amount?

Agree with all of the above.  Also, it can only be operated in branch ... welcome to the world before eBanking! I have an eSaver at NatWest which they will happliy transact on in branch as well (e.g. deposit a cheque directly to it, rather than transfer after clearing via a Current Account). If memory serves, that's paying me 2.88%. No restrictions.

Thanks costal58, you confirmed my thoughts exactly !, why do these companies try to con people into thinking that they would be getting a fantastic rate, when the truth is that what they are offering is a medioca, uninteresting rate, that can be bettered by lots of deals currently available, and the comments lodged by other poeple relating to the branch only deal, makes the entire operation frankly ludicrous. 

The interest rate is 5%!
If you put in £500 a month, you have not invested £6000 for a year. You have invested the first £500 for a year. The next £500 is only invested for 11 months, the next £500 for 10 months, the next £500 for 9 months and so on. The last £500 will only be invested for a month. 
Hence the interest will be £500/100x5 = £25 for the first £500 invested for the full year, then £25/12x11 for the next £500 invested for 11 months, £25/12x10 for the next, £25/12x9 for the nexr and so on, until the last £500 invested for only one month will only get £25/12x1. Add up the 12 amounts to get the total interest for the year.
The interest on £500 for one month is £2.08333. The total interest, calculated as above, on the money invested over the year is £162.50.
If you add together the increasing amounts in the bank for each of the 12 months - £500+£1000+£1500+£2000 etc. they add up to £39,000. Divide by 12 to get the average, which gives you £3250. Divide by 100 then multiply by 5 to get 5%. Hey presto! £162.50.

You have to work it out month by month. You can't work it out as 5% of £6000, as you rightly say, as you only have £6000 in the accopunt for the last month. See my full explanation somewhere below. Those who say it's only 2.6% or 2,7% are wrong. If the rate was 2.6 you would only get £84.50 interest at the end of the year.

This account is not much good to most people in the UK - how many people live near a Cheshire BS branch? Its ridiculous in this day and age that you cant apply online.