Building society offers 'striking' 6% interest savings account

Monmouthshire Building Society is offering savers a "striking" 6% AER interest rate on its regular savings account.

Savers can deposit up to £500 into the account each month within its 12-month term, meaning a maximum of £6,000 can be put away in total. Regular savings accounts typically require people to deposit a set amount each month and make minimal to no withdrawals. However, Monmouthshire's account offers more flexible terms, as there are no restrictions on withdrawals. Rachel Springall, finance expert at Moneyfactscompare, told Express.co.uk: "Monmouthshire Building Society offers a regular savings account which would be suited to those looking to save decent sums every single month.

"It's regular saver pays a striking 6%, and savers can put away £500 every single month for a year, which is much higher than some of its peers."

She added: "The account also allows unlimited withdrawals, which is an added bonus for savers who might need to access their cash during the year."

The account can be opened online, in a branch, or through the mutual's app with a minimum deposit of just £1. To launch it, savers must be 16 and over and UK resident.

Based on the current interest rate, a £6,000 deposit is estimated to earn £194.55 over 12 months, bringing the total balance to £6,194.55.

New research by savings app Spring showed that 323,000 accounts with balances above £100,000 collectively contain more than £32billion, but they are all sitting in current accounts that receive zero returns. Additionally, a staggering 6.4 million current accounts contain balances above £10,000 that receive nothing.

Britons have been urged to review their accounts to make sure they're not losing out.

Derek Sprawling, head of money at Spring, said: "There is a sizeable number of current accounts that contain large balances of over £10,000 earning zero interest. That money is being eroded in value and could be generating much better returns if moved to a savings account offering a rewarding rate of interest."

He added: "Our research shows that apathy and anxiety are often a barrier for people to switch money from their current account to a savings account."

Spring described many of these account holders as "current account coasters", with around 29 million UK adults (55% of the population) habitually leaving surplus cash in their current accounts after bills and expenses.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, added: "Savings rates have been easing downwards in recent months, and with inflation creeping upwards, real, pre-tax returns are very much on the decline. That should not be a cause for apathy, however."

"Anyone with money idling in an old savings account paying a dismal rate should still shop around to secure the best deals while interest rates remain on the higher side."