M&S Bank adds 6% regular saver perk to free bank account

Market-leading regular saver now available with the M&S Bank Current Account.

M&S Bank has launched a new incentive on its fee-free current account.

New and existing customers can now get exclusive access to a regular monthly savings account paying a market-leading 6%, fixed for 12 months.

The M&S Monthly Saver is already offered to Premium Current Account holders, who pay a monthly fee of £10.

But now M&S Current Account holders, who pay no fee, can access the savings deal, on top of other perks like a £100 interest-free overdraft, free cash withdrawals abroad, M&S loyalty points on debit card spending and preferential rates on other M&S Bank products.

Compare current accounts

The M&S Monthly Saver

Regular saver accounts, as the name suggests, reward you for regularly saving into them.

They can be a great starting point when you're trying to get into the savings habit as they encourage you to build a lump sum and usually offer a very competitive rate.

The M&S Bank Monthly Saver allows deposits of between £25 and £250 each month.

If you save less than £250 in any given month, you can carry over any unused allowance to the following months.

The account offers a fixed rate of 6% for 12 months. Interest is paid annually and withdrawals are not permitted.

If you pay in the maximum monthly contribution of £250 on the same date each month, for 12 months, you’ll end up with a £3,000 pot and will have amassed a £97 return before tax.

How it compares

Here’s how the M&S Monthly Saver compares to other regular savings accounts on the market right now.

Account	Interest rate AER	Rate type	Min/max monthly deposit	Term	Need to know
First Direct Regular Saver	6%	Fixed	£25/£300	12-month bond	Only available to First Direct 1st Account customers.
M&S Bank Monthly Saver	6%	Fixed	£25/£250	12-month bond	Only available to M&S Current Account and Premium Current Account customers.
HSBC Regular Saver	6%	Fixed	£25/£250	12-month bond	Only available to HSBC Premier or Advance customers.
Norwich & Peterborough Gold Savings	4%	Fixed	£20/£250	12-month bond	Only available to N&P Gold Classic Current Account customers paying in a minimum of £500 each month.
Club Lloyds Monthly Saver	4%	Fixed	£25/£400	Instant access	Only available to Club Lloyds and Club Lloyds Added Value current account customers.
HSBC Regular Saver	4%	Fixed	£25/£250	12-month bond	Only available to Bank Account, Bank Account Pay Monthly or Graduate Bank Account customers.
Saffron Building Society Members’ Regular Saver	4%	Fixed	£10/£200	Instant access	For a limited period open to anyone that applies in branch.
Kent Reliance BS Regular Savings	4%	Variable	£25/£500	Instant access	Branch based account.
Skipton BS Loyalty Regular Saver	4%	Fixed	£0/£250	12-month bond	Only available to existing members that joined before 26 January 2014. £1 minimum deposit to open the account
West Bromwich BS Adults’ Fixed Rate Regular Saver (Issue 3)	3.30%	Fixed	£10/£100	12-month bond	Branch based account.
The Nottingham Regular Saver	3.10% (includes bonus of 3%)	Variable	£10/£250	Instant access	Branch based account. Only two penalty-free withdrawals each bonus period (from 1st October – 30th September each year).
Leeds Building Society Regular Saver Issue 3	3.05% (includes bonus of 1.80%)	Variable	£50/£250	Instant access	One withdrawal is permitted each bonus period (from 1st November – 31st October each year).
Skipton Building Society Regular Saver	3%	Fixed	£0/£250*	12-month bond	Branch based account.

As you can see M&S Bank offers the joint market-leading rate of 6%, along with First Direct and HSBC Bank.

First Direct’s deal stands out as it allows you to save £50 a month more and therefore build a bigger maximum pot of £3,600.

All three of the top rates are exclusive to current account holders, so if you don’t already have one you’ll need to switch in order to take advantage.

First Direct is offering new customers that switch to its 1st Account a £125 cash bonus, while M&S Bank offers a £100 M&S gift card to those that switch to its Current Account or Premium Current Account. HSBC doesn’t offer any switching incentive.

Compare current accounts

Not for everybody

A regular saver won’t suit those who already have a decent savings pot.

That’s because you’ll have to drip feed the cash into the account, meaning you won’t have the maximum amount saved away until month 12.

If you have a lump sum to save, take a look at The best fixed rate savings accounts, or for tax-free savings The best Cash ISAs.

Compare savings accounts

More on savings:

The best regular savings accounts

The best fixed rate savings accounts

Where to earn most interest on your cash