Building Societies launch new monthly savings account

The Cheshire, Derbyshire and Dunfermline Building Societies have launched a new account designed to give savers a great rate of interest with the flexibility of choosing how much they want to invest each month.

The three societies, which are all part of Nationwide, offer the new Monthly Saver account, which has a generous conditional bonus rate of 4.00% Gross p.a/AER including conditional bonus (Variable) linked to Bank of England Base rate + 3.50% until the 31st October 2010. So, if you save £100 a month for 12 months until 31.10.10 into our Monthly Saver and make no withdrawals, you would earn £26.08 gross interest on 31.10.10 based on the current conditional bonus rate of 4.00% gross p.a/AER (variable).

To qualify for the conditional bonus rate, customers can make one withdrawal in addition to missing one monthly deposit up until 31st October 2010. If these limits are exceeded, the rate reverts to the standard rate which is linked to the Bank of England base rate + 1.50% (currently 2.00% Gross p.a/AER variable). From the 1st November 2010, there is no conditional bonus rate and the standard interest rate on the account will remain at Bank of England Base Rate + 1.50% with no restrictions on deposits or withdrawals. From 1st November 2011 the rate of interest will be variable and is not guaranteed.

It will be available over the counter at Cheshire, Derbyshire and Dunfermline branches from 19 October 2009.

"The key benefit of this account is its flexibility," said Alistair Welham, Head of Products and Marketing for the Cheshire, Derbyshire and Dunfermline.

"Savers can vary the amounts invested from a minimum of £10 up to £250 each month according to their personal financial circumstances. There is no limit to the number of deposits made each month and with a guarantee of Bank of England Base Rate plus 1.5% in the second year, this really is a very competitive savings account."

There are no age restrictions, meaning the Monthly Saver is ideal for anyone wanting encourage their children to save as well as putting a bit away for a rainy day. The account is also available without any tie ins to purchase other products offered by the Cheshire, Derbyshire or Dunfermline, making this account different from many savings accounts currently offered on the High Street.