Cambridge Building Society is offering 5% interest rate on savings – do you qualify?

Its Extra Reward Regular Saver account pays interest on a yearly basis. Interest payments start one year after account opening. This is because Cambridge Building Society pays interest on the maturity date, which is one year from the date of a person’s initial deposit.

The five percent interest rate is fixed until the account maturity date.

People are free to make as many deposits as they like each month.

However, the total must not exceed £250.

Any payments that take a person’s account over the maximum monthly balance will be returned in full.

There is no penalty for missing a month but in the event that this does occur, a person will subsequently lose their deposit allowance for that month.

The minimum investment required to open an Extra Reward Regular Saver account is £100.

To ensure payments count for the relevant month, people are encouraged to make all their deposits between the first and the 25th of the month.

They can pay in cash and cheques and make debit card payments at any branch or transfer funds from an existing Cambridge Building Society account.

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The overall maximum holding by any one person in respect of all accounts is £2,000,000.

People need to have held a savings or mortgage account with Cambridge Building society for at least three years in order to qualify for the Extra Reward Regular Saver account.

On the maturity date, the account balance (including any accrued interest) will transfer to an appropriate instant access account available at the time and provide instant access to a person’s money.

The account can be opened in branch or by phone.

Another option is to open the account via post.

Withdrawals are not permitted during the fixed rate term.

Closure is allowed subject to a 90 day interest penalty fee.

If a person hasn’t built up enough interest at the time of closure, the fee is taken from their capital balance.

No tax will be automatically deducted from the interest paid on this account.

People can only hold one Regular Saver account with the Society at any one time.

This includes their Regular Saver, Reward Regular Saver and Extra Reward Regular Saver accounts.

Cambridge Building Society is covered by the Financial Services Compensation Scheme (FSCS).