For canny savers it pays to go local

SAVERS can fare much better with local building societies than with the big banks.

Building society accounts pay up to 1.65 pc and give you easy access to your cash. In contrast, big banks pay just 0.01 pc.

Money is still pouring into easy-access accounts, Bank of England figures showed this week. In November, the nation’s savers added a further £12.9 billion, boosting the total in easy-access accounts to £858 billion.

Yet about two-thirds of this money sits with large banks paying dire interest rates.

Some building societies keep their top rates for people living in the area where they operate. Others offer them to loyal customers who have had a mortgage or savings account for at least a year.

They often come with quirks about how much you can save, while some say you can take out money only three times a year.

Most accounts can be opened in branches or by post and some are available online. If you want to use a branch, check which documents you will need first.

Among the best accounts is Principality BS Thank You Saver at 1.65 pc — but only NHS workers who live in the society’s defined area in Wales can open the account, available through its branches and online.

You can put in up to £250 a month and have easy access, although you are limited to three withdrawals per calendar year.

Darlington BS Special Occasions Saver pays 1.25 pc, available by post or through its nine branches for savers with postcodes DL, DH, SR, TS, YO and HG. You can save up to £250 a month and, as a one-off, up to £750 in one month only. Withdrawals are limited to four per calendar year.

Buckinghamshire BS Regular Saver Locals, on sale by post or through its branch in Chalfont St Giles, pays 1.2 pc. You need £10 to open an account, can save up to £500 a month and there are no restrictions on how many times you can withdraw money.

If you don’t qualify for a top local account, try Coventry BS or Nationwide. Coventry BS Regular Saver 4 pays 1.3 pc on a 12-month savings plan, open to all. But if you make a withdrawal, you pay a charge equal to 30 days’ interest. For example, a £1,000 withdrawal would cost £1.07.

Nationwide’s online- only Start to Save pays 1 pc on up to £100 a month, gives you easy access with no charge and is available to people in England, Wales and Scotland.