Building society offers savings account for 2025 with competitive 7% interest rate | Personal finances | Finance

Principality Building Society offers a competitive savings account paying 7% interest, aimed at helping Brits build a fund by 2025.

The Regular Christmas Savings 2025 can be launched with just £1 and the interest rate It is fixed for 12 months.

The minimum deposit of £1 must remain in the account until maturity and up to £125 can be paid out per month.

This allows savers to accumulate £1,500 in total and at the current annual equivalent rate (AER) of 7%, the total pot is estimated to grow to £1,556.58 at maturity.

No withdrawals are allowed until the term ends, at which time interest is paid on the balance.

Savers must be aged 16 or over and resident in the UK, and the account can be opened online, in a branch or in a branch. Deposits are protected by the Financial Services Compensation Scheme (FSCS).

Regular savings accounts typically offer higher interest rates and the terms generally encourage savers to deposit money into the accounts monthly.

To earn interest, savers only need to meet certain requirements on the respective accounts and this usually involves making minimum withdrawals and depositing regularly.

Coventry Building Society has also launched a regular savings account for 2025, which is also aimed at those looking to set aside small amounts throughout the year.

The Loyalty Seasonal Saver is available to those who have been with the company continuously since at least January 1, 2024.

Savers can deposit up to £250 each month, and it is estimated that the total savings, including interest, will reach £3,097.89 at the end of the term if the maximum amount is saved monthly.

The account can be opened with as little as £1 and there is no need to deposit funds every month, giving savers flexibility.

The Loyalty Seasonal Saver can be opened online, in a branch, by phone or by mail. At the end of the 12-month term, the account will mature to Easy Access Saver (7), which currently offers a variable rate of 2.65% with unlimited withdrawals.

Commenting on the product, Betaney Cozens, savings product manager at Coventry Building Society, said: “Saving now can help protect against future financial surprises and provide peace of mind, especially after big spending over the Christmas season. The new Loyalty Seasonal Saver represents an ideal option for members who can reserve small amounts throughout 2025 to use during the festive period next year.

“This account is designed to encourage regular savings, helping people save for specific goals or as a backup during a time when finances may feel stretched.”