People can get 5.5 percent interest and make regular contributions to their savings with the Halifax Regular Saver. A person can save between £25 and £250 each month by one standing order or bank transfer, and this can be topped up as far as the £250 monthly limit.
An individual can only have one Regular Saver and the account can be opened online, on the app, in branch or over the phone.
When a person applies to open an account, they will also have an Everyday Saver account opened for them.
They will need to keep this account open so the funds can be transferred into it when the Regular Saver completes its term, after 12 months.
A person must be 16 or over and a UK resident to open an account and they can only open the account in a sole name.
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An individual cannot withdraw savings unless they close the Regular Saver account. The 5.5 percent interest rate is fixed for the 12-month term of the account.
This means if a person deposits the full £250 each month, after 12 months they will have a balance of £3,082.50. Interest is calculated daily.
These are the current rates on the Everyday Saver, which can vary:
- 0.7 percent – balances from £1 to £9,999
- 0.8 percent – balances from £10,000 to £49,000
- 0.85 percent – balances of £50,000 or more.
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With the latest figure for inflation at 10.4 percent, experts have warned mounting prices for everyday needs are eroding the value of people’s savings, which are growing at a slower rate.
Richard Ollive, senior financial adviser at Wesleyan, spoke to Express.co.uk about what Britons can do to protect and grow their money.
He said: “While saving is a great way to ensure you’ve got money for a rainy day or towards a big purchase, investing offers the opportunity to grow your wealth and make your money work even harder.
“It can be particularly important at times of high inflation, like we’re seeing now. Our research showed that more than a quarter (28 percent) of Brits actually have more than half of their total savings in a savings account.
“Although money in a standard savings account will probably receive interest from your bank, that rate of interest is likely to be below the rate of inflation – how fast the price of goods and services is rising.”
He encouraged Britons to look at investing as a way to grow their money as a person can start off by investing “any amount”.
Sarah Coles, head of personal finance at Hargreaves Lansdown, spoke about what savers can do to make sure they get the best return.
She said: “For variable rates, incremental changes really add up over time. If you haven’t switched easy access accounts for some time, it’s worth checking what else is out there, because you can currently make more than 3.25 percent.
“You could wait for rates to peak before doing this, but if your money is in an unrewarding high street account in the interim, you risk missing out on significant interest in the interim.”
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