New regular savings account will pay 6.75% – with one catch

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A new regular savings account paying 6.75% has been launched by a building society – with one catch: it is only for for ‘loyal’ customers.

The account lasts for 12 months and savers can deposit up to £250 each month.

The loyalty regular saver (2) account may be opened by savers who have been members of Coventry Building Society continuously since at least January 1 2023.

Withdrawals are allowed, subject to a charge equal to 30 days’ interest on the amount withdrawn.

Jonathan Wilson, senior savings propositions manager at Coventry Building Society, said: “We’ve kept the minimum balance at just £1 and there’s no limit on the number of times savers can put money in over the year, as long as it doesn’t exceed £250 in a month.”

After 12 months, the account will mature into a variable rate easy access saver, which currently pays 3.10%.

The Society also offers a regular saver at 5.00% for those who do not qualify for the loyalty regular saver.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “A variable rate of 6.75% is highly attractive, and the account offers flexibility with the monthly payments, so it’s a great addition to the range of deals Coventry Building Society offer to reward their loyal members.”

Ms Springall added: “Gatehouse Bank currently pay 7.00% variable annual profit rate on its regular saver account which accepts payments of up to £300 per month for a year, it does not allow access to funds (for a 12-month period), but savers can skip deposits.”

She added that the Co-operative Bank offers a variable rate of 7.00% on its regular saver issue one.

Ms Springall added: “The right savings account always comes down to someone’s specific needs, so it’s important to be aware of the workings of a regular savings account versus an easy access account, as flexibility with deposits and the interest earned can be rather different.

“Savers with a fixed-term regular savings account must make a diary note to review their savings pot after a year and move their cash elsewhere to ensure they are earning a decent return of interest.”