The Co-operative Bank offers bumper 7% interest rate on savings account | Personal Finance | Finance
The Co-operative Bank is offering savers a bumper 7% interest rate regular savings account, aimed at customers looking to build a savings habit. The account can be opened with just £1 and allows deposits of up to £250 per month, with a maximum balance of £3,000 after a year. Interest is paid when the account matures after 12 months.
At the current rate, someone saving the full £3,000 could earn £114.21 in interest, bringing their total balance to £3,114.21. Unlike many regular savings accounts, withdrawals are permitted at any time without penalty. To be eligible, applicants must be UK residents aged 16 or over and hold an existing Co-op Bank current account.
A statement on the Co-op Bank’s website reads: “Whether you want to save up for something special, or just want to get into a good savings habit, Regular Saver can help with that.
“Available exclusively to Co-operative Bank current account holders, you’ll also get a higher rate of interest compared with our other instant access savings accounts. And for added peace of mind, you can access your money whenever you want.”
Other competitive regular savers
Principality Building Society currently offers the market’s highest Annual Equivalent Rate (AER) at 7.5%. Savers can pay in up to £200 a month over a six‑month term, with no withdrawals allowed.
A maximum £1,200 deposit could return £27.53 interest, giving a final balance of £1,227.53. So, while it may have a market-leading AER, its six-month term limits the total interest earned.
Zopa offers 7.1% AER over 12 months, with a higher monthly allowance of £300. This means savers can deposit up to £3,600 across the year. Interest is paid on maturity, with the total pot expected to reach £3,737, including £137 in interest. Withdrawals are allowed, but only up to the monthly limit can be replaced.
First Direct also offers a 7% AER over 12 months with a monthly allowance of £300. Savers paying in the full £3,600 would see around £136.50 in interest, taking the balance to £3,736.50 after a year.
Aileen Robertson, head of savings at Atom bank, highlighted the importance of building good savings habits and making the most of your money.
Ms Robertson said: “Whether it’s setting aside a few pounds each week, opening a dedicated savings account, or thinking about your goals for the year ahead, every little bit adds up.
“For many people, having that safety net can make a real difference, giving peace of mind in case of unexpected expenses. And for those already saving, it’s an opportunity to build on that foundation and work towards bigger ambitions, whether that’s a holiday, a home deposit, or simply more financial freedom.”
She added: “The key is to start somewhere, no matter your circumstances, and to stay consistent.”
