The Co-operative Bank has launched a new savings account paying a competitive seven per cent interest rate.
The new Regular Saver account is open to any customers with a qualifying Co-operative Bank current account.
This new option offers the same market-leading return as first direct’s Regular Saver Account, Gatehouse Bank’s Regular Saver, and Skipton Building Society’s Member Regular Saver Issue 3.
Eligible savers can open the account from £1 and once opened, they can pay in up to £250 each calendar month over the 12-month term.
It means those who deposit the maximum £250 each calendar month could earn up to £114.21 in interest across the 12-month term.
Customers who withdraw money from their account during this time will accrue the same interest but on a lower balance.
The Co-operative Bank said unlike similar savings accounts offered by first direct and Skipton Building Society, this account allows customers to access their funds penalty-free and there is no minimum monthly deposit.
People who aren’t currently with the bank can sign up for a current account in order to then qualify for the Regular Saver.
John Ward, Director of Product at The Co-operative Bank, said: “We’re pleased to launch our Regular Saver account today and hope it will encourage more people to create good savings habits.
“As the only UK bank with a customer-led Ethical Policy, our savings customers can rest assured that their money will never be used to fund organisations involved in harmful activity such as the extraction or production of fossil fuels or any organisation that fails in its responsibility to respect human rights.”
Customers can only hold one Regular Saver account of the same issue at any one time, and joint account holders can’t open an account of their own.
Interest will be paid at the end of the 12-month term, and the account will then convert to a Smart Saver account.
LATEST DEVELOPMENTS:
Yorkshire Building Society launched a new regular savings account with a 5.75 per cent interest rate today
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Elsewhere today, Yorkshire Building Society launched its new regular savings account which pays 5.75 per cent (variable).
Savers can deposit up to £205 per month into this account, which is exclusive to Yorkshire Building Society, Chelsea, N&P, and YBS Shareplans who have had a continuous membership for at least 12 months prior to application.
The building society also offers a regular savings account which is open to all, with a variable rate of 5.25 per cent.
Chris Irwin, director of savings at Yorkshire Building Society, said: “We’ve supported generations of people and millions of members to save for important moments in life and we’re committed to continuing to explore ways that can help our members reach their financial goals or save for the future.
“Regular savings accounts are one way we can encourage our members to establish healthy savings habits. We’re really proud that this new account, which comes with an exclusive interest rate for our members is another example of how we reward the loyalty of our valued savers.
"Previous loyalty accounts have proved popular with savers and we’re sure this latest edition will be equally as well received.”