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.
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.
[SPOTLIGHT]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.
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.
More on savings:
The best regular savings accounts
The best fixed rate savings accounts
Where to earn most interest on your cash