Act now to get 5% on your savings

Published by Rachel Lacey on 22 November 2010.
Last updated on 08 December 2010

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Skipton Building Society is to withdraw its market-leading regular savings account, which pays 5% irrespective of whether you already have another account with the society.

The account will be pulled at the close of play on Friday 10 December.

First Direct and HSBC currently top the regular saver best buy tables with accounts paying 8% over the year but are confined to those customers who already have current accounts with the banks (in HSBC's case, fee-paying accounts).

Skipton's year-long deal pays 5% on monthly deposits from £10 to £500 and can be opened in branches or over the phone. A maximum of £6,000 can be invested and savers can make as many deposits as they like, so long as they stay within the minimum/maximum monthly restrictions.

Like most regular saver accounts, no withdrawals can be made over the 12-month period after which the savings balance is transferred into an easy access account.

If savers were to pay in the maximum £500 a month they would earn £165 gross in interest and have a final balance of £6,165.

The deal will be replaced by the Regular Saver Issue 2 which will pay 3.25%. Although the interest rate isn’t quite so attractive it is fixed for a year and there will be no minimum or maximum contributions.

By comparison, Norwich & Peterborough Building Society and Principality Building Society also offer regular saver accounts that aren't restricted to existing customers, both currently pay a fixed rate of 4% over the year.



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