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Principality Building Society launch 6.75% Regular Savings Account

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Principality Building Society have launched a new regular savings account paying an attractive 6.75% gross interest. The account is called Regular Saver Bond Issue 1 and here are the details:
    1 year term account. Account matures on the anniversary of the account being opened.
    6.75% fixed rate interest. Throughout the year your money will earn 3.75% gross, and as long as you haven't made any withdrawals and have made all your monthly deposits they will pay a bonus of a further 3.00% gross at the end of the 1 year term.
    Deposit between £20 (min) - £500 (max) per calendar month.
    You have to make an opening deposit (min £20; max £500) by cash, cheque or transfer from an existing Principality Account. Eleven further deposits are required by
Standing Order only. You must set up your Standing Order payments to leave your account on or before the 20th of each month. Maximum account balance £6,000.
    No withdrawals permitted during the 1 year term.
    An Instant Access Account must be opened at the
same time as the Regular Saver Bond (if you already have an Instant Access Account you may be able to use this).
    Interest is calculated daily and at the end of 12 months, your money is moved into your linked Instant Access Account.
    The account can be held in single or joint names with a maximum of 2 holders per account.

You can open a Regular Saver Bond at any Principality building society branch or by post. For more info you can call their Customer Contact Centre on 0845 045 0006 or e-mail them at: [EMAIL=enquiries@principality.co.uk]enquiries@principality.co.uk[/EMAIL]

You can find details on this account from the Principality Building Society website. Click on 'Savings and Investments' and then 'Fixed-Rate Bonds'. The terms and conditions for this account are also available via their website. This account also features on Moneyfacts' Regular Saver Accounts best buy tables.
Please call me 'Kazza'.
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Comments

  • Poppy9
    Poppy9 Posts: 18,833 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I opened one with the Halifax paying 7%


    Halifax
    :) ~Laugh and the world laughs with you, weep and you weep alone.~:)
  • Paul_Varjak
    Paul_Varjak Posts: 4,627 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Poppy9 wrote:
    I opened one with the Halifax paying 7%

    Yes, well known on these boards but the Principality Building Society offering is a new offering.

    For those, like me, have already maxed out their Halifax Regular Saver account this is a useful second regular savings account.
  • Poppy9
    Poppy9 Posts: 18,833 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Yes, well known on these boards but the Principality Building Society offering is a new offering.

    For those, like me, have already maxed out their Halifax Regular Saver account this is a useful second regular savings account.

    I appreciate that but for those who don't look regularly at the savings board just new posts etc might not realise there are better rates about.
    :) ~Laugh and the world laughs with you, weep and you weep alone.~:)
  • Kazza242
    Kazza242 Posts: 2,199 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Poppy9 wrote:
    I appreciate that but for those who don't look regularly at the savings board just new posts etc might not realise there are better rates about.

    True, the Halifax regular saver does have a slightly higher interest rate at 7%, BUT, the Principality account allows the saver to deposit up to £500 per month compared to Halifax's £250. Those savers that have more funds available each month might prefer the Principality 6.75% account.
    Please call me 'Kazza'.
  • mary
    mary Posts: 1,585 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Gave them a call just now to send me an application form. If you pay £500 each month, gross interest is £220.25 and net interest is £176.20, so I was told
  • lipidicman
    lipidicman Posts: 2,598 Forumite
    Sounds about right - I was hoping this might be more like the Halifax Monthly which lets you put in £500 a month, pays only 5.35% - but crucially doesnt sweep out at the end - that would have been sweet. Oh well, glad I got in on the Abbey 7% £500pm just before it finished
  • Stonk
    Stonk Posts: 937 Forumite
    As people have been mentioning monthly limits and sweep-outs, another one to throw into the fray is Derbyshire BS's Regular Saver. Up to £1,000 a month, no sweep-outs, interest rate 5.85%. In quite a short time you can have a significant balance earning a very decent rate.

    Obviously go for the higher rate / lower deposit accounts first, but if like me you are drip-feeding the contents of your standard savings accounts into regular savings accounts, you'll appreciate the Derbyshire's ability to soak up a big chunk each month.
  • cloud_dog
    cloud_dog Posts: 6,321 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Just a query on the 3% bonus.

    Will this be 3% on the sum of monies deposited during the year, or will it be a pro-rata 3% bonus based on multiples of 1/12ths?

    I doubt its the former, but thought I ask, as if it was then the real rate of return would be higher than the quoted 6.75 (me thinks - or am I being blonde).

    cloud_dog
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Kazza242
    Kazza242 Posts: 2,199 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Stonk wrote:
    As people have been mentioning monthly limits and sweep-outs, another one to throw into the fray is Derbyshire BS's Regular Saver. Up to £1,000 a month, no sweep-outs, interest rate 5.85%. In quite a short time you can have a significant balance earning a very decent rate.

    Obviously go for the higher rate / lower deposit accounts first, but if like me you are drip-feeding the contents of your standard savings accounts into regular savings accounts, you'll appreciate the Derbyshire's ability to soak up a big chunk each month.

    I agree with you on this. I opened two Derbyshire BS regular savers last year, with lump sum deposits to begin with. They've been really good, especially as the funds that have built up will not be swept out and will be allowed to compound. I also have 1-year term regular savers at 7% with Abbey and Halifax.
    cloud_dog wrote:
    Just a query on the 3% bonus.

    Will this be 3% on the sum of monies deposited during the year, or will it be a pro-rata 3% bonus based on multiples of 1/12ths?

    I doubt its the former, but thought I ask, as if it was then the real rate of return would be higher than the quoted 6.75 (me thinks - or am I being blonde).

    Principality BS aren't very clear on this. However, like you, I strongly suspect they'll calculate the bonus daily, according to the amount of time the money is in the account. Still, it is a fantastic rate from such a small Society. Well worth a look IMO. Another good thing about this offering, is that that the minimum age of an account holder is 16 years old, most accounts insist upon a minimum 18 years of age.
    Please call me 'Kazza'.
  • steady__eddie
    steady__eddie Posts: 1,455 Forumite
    Part of the Furniture Combo Breaker Uniform Washer
    When did Principality change the rules on membership then ?
    I tried to open an a/c. with them some time ago but because I was ENGLISH, I was not allowed to. I queried it with the C.R.E. on the grounds of racial discrimination but there's no goody-goodies about when you need them and they said that Principality were within thier rights and could choose not to accept my application on the grounds of geographical location !
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