Money Talk

Consumer expert Sue Hayward’s savvy finance tips and advice

Bigger isn’t always better when it comes to where you stash your savings. Some “local” building societies can beat rates offered by bigger names.

Building societies like the Ipswich, Swansea and Mansfield are rewarding savers with rates of up to 2.85% on Regular Saver accounts. But these accounts are only open to locals, say financial information group Defaqto. Others including the Cumberland, Earl Shilton and Loughborough all pay 2% or more.

Check out the rest of the market – and while, yes, you can find regular saver accounts paying up to 5% from the likes of M&S, First Direct and Nationwide, check terms and conditions as they’re only available for existing customers, may only last a year and in most cases you need to keep your current account there.

So if you want a straight regular savings account, with no strings or hoops to jump through, it’s worth checking out smaller building societies in your area.

Check how much you can pay in each month, too. While you can open many regular saver accounts with just £1, many cap the amount you can pay in at between £250 and £500 a month. Some smaller societies like the Monmouthshire let you pay in £1,000 a month, which can boost savings if you’re looking to transfer money from a poorly paying account.