Nationwide Building society offers competitive 6.5% interest savings account

Nationwide Building Society is offering Brits a competitive 6.5% interest rate AER on its regular savings account. Regular savings accounts can be a good option for those looking to get into a savings habit, as these accounts typically offer higher interest rates and the terms generally encourage savers to pay money into the accounts monthly.

Customers can launch Nationwide's Flex Regular Saver with as little as £1, with interest paid on the anniversary of opening. Monthly deposits are capped at £200, allowing for a maximum total contribution of £2,400. Based on current rates, that would earn £84.50 in interest over a year.

The account is available to UK residents aged 16 or over who hold a Nationwide Building Society current account.

This account is more flexible than what's typically expected from a 'regular' savings account, as up to three withdrawals can be made without penalty. However, after the fourth, the interest rate will drop to 1.25%.

After a year, when the account matures, money held in the account will be moved to an instant access savings account with the mutual. Interest is paid annually.

How does this account compare?

Savers can still benefit from higher interest rates despite the Bank of England's latest Base Rate cut to 4%. The base rate can impact the interest rates that providers offer on savings accounts. When the Base Rate falls, interest rates on savings accounts can fall, too.

Principality Building Society is still topping the table for regular savers with an Annual Equivalent Rate (AER) of 7.5%. The account runs for six months, and interest is paid on maturity.

Savers can invest up to £200 per month, allowing the pot to grow to a total of £1,200, and withdrawals are not permitted until the account matures. So, while it may have a market-leading AER, its six-month term limits the total interest earned. With a maximum investment of £200 per month, savers will end up with £1,227.53, including £27.53 in interest.

Zopa offers a 7.1% AER over 12 months with a maximum limit of £300 per month, allowing savers to amass £3,600 in total savings. Interest is paid at the end of the term, with a full £3,600 deposit expected to earn around £136.50. This will bring the total balance to approximately £3,736.50. Savers are allowed to withdraw money from the Zopa savings account at any time without charge.

First Direct is just behind with a 7% AER over 12 months. The account allows a monthly deposit of £300, which can also total up to £3,600 in savings over a year. At the end of the term, First Direct says savers will amass around £3,736.50, including £136.50 in interest.