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Latest Principality BS regular savings bond

Latest Principality BS regular savings bond

Category: Savings

Updated: 25/06/2009
First Published: 13/01/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Principality BS has today launched a new fixed rate regular savings account.

The one year account will pay 5.00% at the end of term and 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 each month but the changes must coincide with your 12 monthly payments. At the end of the term you must have made all 12 regular payments to be able to enjoy the headline rate.

But beware, this account does not permit any withdrawals should therefore only interest 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 the 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 is currently only offering a measly 0.10%. It may be worthwhile making a diary note for one year's time to revisit savings pages for the latest and best alternatives. Secondly, if you do not fulfil the conditions of regular savings, the rate again drops to the bottom tier of the Principality Instant Access Account.

Although the rate of 5% is less than Principality has previously offered, it is still one of the best rates for this type of account, with the ability to increase/decrease your monthly commitment, we rate this four out of five possible Moneyfacts stars.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.