Getting 7 % High Interest Rate on Savings

A High 7% Interest Rate on Savings

A High 7% Interest Rate on Savings

At the time of writing first direct bank lists an attractive 7% interest on its regular saver. The majority of other banks offer around 5%.

What is a Regular Saver

Saving money is an essential part of financial planning. Whether someone is saving for a rainy day, a down payment on a house, or a dream vacation, having a dedicated savings account is crucial. One way to make saving money easier and more manageable is to open a regular saver account.

A regular saver account is a type of savings account that allows individuals to save a set amount of money on a regular basis, usually monthly. These accounts are typically offered by banks and other financial institutions and come with a range of features and benefits.

The way a regular saver account works is simple. Individuals set up a standing order from their current account to their regular saver account, which transfers a fixed amount of money each month. The interest rate on these accounts is often higher than that offered on standard savings accounts, and some accounts even come with bonuses or other incentives for consistent monthly savings.

One of the key benefits of a regular saver account is that it encourages individuals to save money regularly, which can help them to build up their savings over time. These accounts are also a good way to save for specific goals, such as a wedding or a down payment on a house, as they allow individuals to save a set amount each month towards their goal.

Regular saver accounts are also a good option for those who may struggle to save money otherwise. The automatic nature of the monthly transfer means that individuals don’t have to remember to transfer money to their savings account each month, and the higher interest rate can act as an incentive to save more.

A regular saver account may not be suitable for those looking to save large amounts of money quickly.

Unfortunately regular saver accounts have a monthly limit on how much can be saved.

With some banks that can be very low and be as low as 250£ per month.

Is the Money protected?

It is important to verify if savings at that particular institutions is covered by The Financial Conduct Authority (FCA). Always check if a firm is FCA-authorised.