Nationwide Building Society offers competitive 6.5% interest savings account | Personal Finance | Finance

As UK savings rates continue to fall following cuts to the Bank of England’s base rate, Nationwide Building Society’s Regular Saver remains competitive, offering savers a near market-leading 6.5% interest. Regular savings accounts typically require people to deposit a set amount each month and make minimal to no withdrawals.

They’re great for disciplined savers who want to build their savings over time and benefit from higher interest rates than standard accounts. Customers can launch Nationwide’s Flex Regular Saver with as little as £1, with interest paid on the anniversary of opening.

Monthly deposits are capped at £200, allowing for a maximum total contribution of £2,400. Based on current rates, that would earn £84.50 in interest over a year.

The account is available to UK residents aged 16 or over who hold a Nationwide Building Society current account.

This account is more flexible than what’s typically expected from a ‘regular’ savings account, as up to three withdrawals can be made without penalty. However, after the fourth, the interest rate will drop to 1.5%.

What else is out there?

Principality Building Society is the best option for regular savers, with an Annual Equivalent Rate (AER) of 7.5%. The account runs for six months, and interest is paid on maturity.

Savers can invest up to £200 per month, allowing the pot to grow to a total of £1,200, and withdrawals are not permitted until the account matures. So, while it may have a market-leading AER, its six-month term limits the total interest earned.

With a maximum monthly investment of £200, savers will end up with £1,227.53, including £27.53 in interest.

First Direct places just behind with a 7% AER over 12 months. The account allows a higher deposit of £300 per month, which totals up to £3,600 in savings over the course of a year.

At the end of the term, savers will have £3,736.50, including £136.50 in interest. Although the interest rate with First Direct is lower, the longer term and higher deposit limit make it a potentially better option to amass larger savings.