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

The account lasts for 12 months

Vicky Shaw
Monday 18 March 2024 08:52 GMT
Related video: The pros and cons of having multiple savings accounts

Your support helps us to tell the story

This election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.

The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.

Help us keep bring these critical stories to light. Your support makes all the difference.

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Withdrawals are allowed, subject to a charge equal to 30 days’ interest on the amount withdrawn.

The Society also offers a regular saver at 5.00% for those who do not qualify for the loyalty regular saver
The Society also offers a regular saver at 5.00% for those who do not qualify for the loyalty regular saver (Anthony Devlin/PA Wire)

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.”

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in