Premier Direct Offers Market-Leading 3.5% Interest Rate for Regular Savers | Personal finance | Finance

first direct currently offers the best interest rate, with its Regular Saver account, at 3.5%. Savers must deposit at least £25 up to £300 each month over a fixed term of 12 months. A minimum deposit of £25 is required to open the account.

A saver setting aside the maximum of £300 per month over the 12 months would get a return of £68.25.

Customers can set up and manage the account online, and they can also manage the account through the bank’s mobile app.

To settle a standing order, a saver will need to call the bank directly.

The account will mature one year after opening, with interest then being added to the balance.

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Closing an account before the end of the 12 months means that interest will be paid to date at a rate of only 0.1%.

The account can only be opened in the name of one person, with only one account per person.

Savers will have to create a first direct current account 1er before opening a regular saver.

New customers who switch their checking account to Direct First can get a £150 bonus if they pay at least £1,000 in the first three months.

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After the first direct rate, NatWest’s Digital Saver comes second, with a rate of 3.3%.

There is no minimum deposit to open the account, with interest paid monthly.

The 3.3% rate applies to balances up to £1,000, with the rate then reduced to 0.3% up to £5,000.

Balances over £5,000 will earn 0.2% interest.

The third best rate is the Royal Bank of Scotland Digital Regular Saver, which also offers 3.3%.

Interest is paid monthly and there is no minimum deposit to open the account, but savers can only deposit £150 per month.

The Bank of England raised the base interest rate to 1.75% earlier this month, with inflation expected to hit 11% later this year.

Laura Suter, head of personal finance at AJ Bell, said: “Savers are the only winners from any rise in interest rates.

“We’ve already seen a rate war break out in the savings market and savers are finally being rewarded for the money they’ve been hiding.”

Stephen V. Lee