The best way to make the most of your money is to invest in a high-interest savings account. However, thousands of savers miss out by keeping their cash in a low-rate savings pot. For these savers, it may be time to shop around for a new savings fund.
The Cambridge Building Society is currently offering a savings account with a 5% interest rate! It’s an account that’s likely to appeal to savers who are looking for a change. So, who is eligible to start saving?
How does the Extra Reward Regular Saver work?
Cambridge’s high-interest account is called the Extra Reward Regular Saver. The account pays interest on a yearly basis, starting one year after you open the fund. The 5% interest rate is fixed until your account maturity date.
You can manage the Extra Reward Regular Saver account in a branch, over the phone or by post. Account-holders can make as many deposits as they like each month up to a limit of £250. This means that you can save a total of £3,000 per year.
The maximum holding for any Cambridge Building Society account is £2,000,000.
As well as offering an impressive interest rate, the Extra Reward Regular Saver account is tax free! However, you may have to pay tax should the interest earned through the account ever exceed your personal savings allowance.
How do you open an Extra Reward Regular Saver account?
To open an account, you will need a minimum deposit of £100. You can transfer money from an existing Cambridge Building Society account if you have one.
The account can be opened in branch, over the phone or by post. You may only hold one Cambridge Building Society savings account at any one time.
Can you withdraw money from the account?
Withdrawals are not permitted during the fixed-rate term. This means that you will not be able to access the funds for one year. However, after this time you will be given instant access to your money and can withdraw at any time.
Who qualifies for the account?
To open an Extra Reward Regular Saver account, you must have held a savings or mortgage account with the Cambridge Building Society for a minimum of three years. As well as this, you can only hold one Cambridge Building Society savings account at any one time.
Savings account holders must be currently living in the UK. You will also need to provide proof of identity before opening an account.
Are there other savings accounts with high interest rates?
If you’re unable to open an Extra Reward Regular Saver account, don’t worry! Here are some other savings account options that offer high interest rates.
M&S Bank Monthly Saver
The M&S Bank Monthly Saver account offers a 2.75% interest rate. You can save a maximum of £3,000 into the account, with maximum monthly payments of £250. Another perk of this account is that monthly savings allowances can be carried over if you don’t pay in the maximum.
Charter Savings Bank 2-Year Fixed-Rate Bond
The Charter Savings Bank Two-Year Fixed Rate Bond offers a 1.55% interest rate. You can save up to £1,000,000 into the account and the account minimum is £5,000. Interest is paid annually and will remain at the fixed rate for two years.
Paragon 2-Year Fixed-Rate Savings Account
The Paragon Two-Year Fixed-Rate Savings Account pays a 1.35% interest rate. Interest is paid either monthly or annually. Also, savers can save up to £500,000 into the account! The interest rate will not change during the two-year fixed term.
Was this article helpful?
YesNo
About the author
Ruby is a freelance writer who enjoys writing about all things personal finance. After embarking on her own side hustle journey three years ago, Ruby is passionate about helping others to learn about the ins and outs of persona… Read More
Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.
This post was originally published on Motley Fool
