The Cambridge Savings Account offers an interest rate of 5%! Are you eligible?

Image source: Getty Images.

The best way to get the most out of your money is to invest in a high interest savings account. However, thousands of savers are missing out by keeping their money in a low rate savings pot. For those savers, it might be time to shop around for a new savings fund.

The Cambridge Building Society is currently offering a savings account with an interest rate of 5%! This is an account that is likely to appeal to savers looking for change. So who is eligible to start saving?

How does the Extra Reward regular saver work?

Cambridge’s high interest account is called the Regular Extra Reward Saver. The account pays interest on an annual basis, starting one year after opening the fund. The 5% interest rate is fixed until the maturity date of your account.

You can manage the Extra Reward Regular Saver account in a branch, by phone or by mail. Account holders can make as many deposits as they want each month up to the limit of £ 250. This means that you can save a total of £ 3,000 per year.

The maximum holding for any Cambridge Building Society account is £ 2,000,000.

In addition to offering an impressive interest rate, the Extra Reward Regular Saver account is tax free! However, you may need to pay taxes if the interest earned on the account exceeds your personal savings allowance.

How do I open an Extra Reward Regular Saver account?

To open an account you will need a minimum deposit of £ 100. You can transfer money from an existing Cambridge Building Society account if you have one.

The account can be opened in branch, by phone or by mail. You can only have one Cambridge Building Society savings account at a time.

Can you withdraw money from the account?

Withdrawals are not allowed during the fixed rate term. This means that you will not be able to access the funds for a year. However, after this time, you will have instant access to your money and can withdraw at any time.

Who is eligible for the account?

To open an Extra Reward Regular Saver account, you must have held a savings or mortgage account with the Cambridge Building Society for at least three years. Additionally, you can only have one Cambridge Building Society savings account at a time.

Holders of a savings account must currently live in the UK. You will also need to provide proof of identity before opening an account.

Are there other high interest savings accounts available?

If you are unable to open an Extra Reward Regular Saver account, don’t worry! Here are some other savings account options that offer high interest rates.

M&S Bank Monthly Saver

The M&S Bank Monthly Saver account offers an interest rate of 2.75%. You can save up to £ 3,000 on the account, with maximum monthly payments of £ 250. Another advantage of this account is that monthly savings allowances can be postponed if you don’t pay the maximum.

2-year fixed-rate bond from the Chartered Savings Bank

The Chartered Savings Bank Two Year Fixed Rate Bond offers an interest rate of 1.55%. You can save up to £ 1,000,000 on the account and the account minimum is £ 5,000. Interest is paid annually and will remain at a fixed rate for two years.

Paragon 2 Year Fixed Rate Savings Account

The Paragon Two Year Fixed Rate Savings Account pays an interest rate of 1.35%. Interest is paid monthly or annually. Plus, savers can save up to £ 500,000 on the account! The interest rate will not change during the fixed two-year term.

Was this article helpful?


Some offers on The Motley Fool UK site are from our partners – this is how we make money and make this site work. But does this have an impact on our grades? Nope. Our commitment is for you. If a product isn’t good, our rating will reflect that, or we won’t list it at all. Additionally, while we aim to showcase the best products available, we do not review every product on the market. Find out more here. The above statements are owned by The Motley Fool only and have not been provided or endorsed by any bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. The Motley Fool UK recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard and Tesco.

Source link