Principality BS aims to attract regular savers with its new fixed rate savings account due to be launched on the 16 December 08.
The one year account will pay 6.00% at the end of term making this one of the top rates for fixed regular savings in today's market. You only need to save a minimum of £20 per month, up to a maximum of £500 per month.
You can change the amount you wish to save but the changes must coincide with your 12 monthly payments and at the end of the term you must have made all 12 regular payments to be able to enjoy the headline rate.
This account does not permit any withdrawals and is therefore only of interest to those who want to start regular savings and need the incentive of tying their money up or those that know they do not need to draw on cash for at least one year.
A couple of things to watch out for; first, on maturity the money is transferred to the Principality Instant Access Account, which means the interest rate will drop, so don't forget to revisit Moneyfacts.co.uk savings pages for the latest and best alternatives. Secondly, if you do not fulfil the conditions of regular savings etc, the rate drops to the bottom tier of the Principality Instant Access Account (currently 0.25%).
Because of the headline interest offered, we rate this four out of five possible Moneyfacts stars.
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