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Time running out for regular savings deals?

Time running out for regular savings deals?

Category: Savings
Author: Derin Clark
Date: 03/04/2019

Time is running out for savers to open Nationwide Building Society's highest interest rate regular savings account, which will end this Friday, 5 April 2019.

Nationwide Building Society's Flex Regular Online Saver offers a rate of 5% AER and is only available to those with a Nationwide FlexOne, FlexStudent, FlexGraduate, FlexDirect or FlexPlus current account and meet certain criteria.

Nationwide cite its reason to withdraw the account is due to it not reaching its intended market. This withdrawal follows other providers who have also withdrawn or reduced their regular savings rates in 2019.

For example, on 18 March, Furness Building Society withdrew its regular savings account, the Furness Lifestyle Saver paying 1.80% AER, and replaced it with three regular saving accounts, all of which pay less than the original product – New Regular Saver: 1 Year paying 1.20% AER, 2 Year paying 1.30% AER and 3 Year paying 1.40% AER. In addition to this, Leek United Building Society withdrew its Regular Savings Account paying 2.25% AER on 14 March 2019 and replaced it with a Flexible Saver Account paying 1.75% AER, while on the 31 December 2018 Leeds Building Society removed its Regular Saver (Issue 22) that paid 2.30%.

Are regular savings accounts becoming more restricted?

In addition, if you want to get a market-leading rate then you need to find the right gateway product, with many banks and building societies now only offering their best-rate regular savings accounts to existing customers, or be prepared to apply by post or travel to a branch.

For example, savers wanting to get the best fixed rate regular savings deal will need to be a first direct current account customer before they can apply for its 5% AER Regular Saver Account. This account allows deposits from £25 to £300 per month for 12 months.

Meanwhile, if you want the best variable rate regular savings account currently on offer from Kent Reliance, then you will need to be prepared to go to one of its branches to open it. Its 1 Year Regular Savings – Issue 3 pays 3.00% AER and allows deposits from £1 to £500 per month for 12 months.

Michelle Monck, Consumer Finance Expert, Moneyfacts.co.uk said: "If you are saving for a new car, holiday, Christmas or the unexpected rainy day then a regular savings account is an excellent way to save towards your goal. However, you will need to be prepared to do some work to get the very best rates. For top rates, you will need to open the gateway account with a bank or building society, be prepared to travel to a specific branch (potentially many miles away) or use the traditional method of paper and post."

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.

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