Building society offers competitive 6% interest savings account

Darlington Building Society is offering a competitive savings account with a competitive 6% AER interest rate.

Savers can deposit up to £250 into the account each month within its 12-month term, meaning a maximum of £3,000 can be put away in total. Regular savings accounts typically pay higher interest rates than other accounts, and require people to deposit a set amount each month and make minimal to no withdrawals. They work well for consistent savers or those looking to start a regular savings habit.

Darlington Building Society's account allows up to two withdrawals per calendar year. Savers aged 16 and over can open the account online with a minimum deposit of £1.

Based on the current interest rate, a £3,000 deposit is estimated to earn £97.89 over 12 months, bringing the total balance to £3,097.89.

Interest is calculated daily and paid annually on December 31 and on account maturity. Interest can either be added to the account or paid to your bank or building society account.

How does the account compare?

Savers can still benefit from higher interest rates despite the Bank of England's latest Base Rate cut to 4%.

Principality Building Society tops the table for regular savers with an Annual Equivalent Rate (AER) of 7.5%. The account runs for six months, and interest is paid on maturity. Savers can invest up to £200 per month, which means the pot can grow to a total of £1,200, and withdrawals are not permitted until the account matures.

Based on the current interest rate, a £1,200 deposit is estimated to earn £27.53 over 12 months, bringing the total balance to £1,227.53. So, while it may have a market-leading AER, its six-month term limits the total interest earned.

Zopa offers a 7.1% AER over 12 months with a maximum limit of £300 per month, allowing savers to amass £3,600 in total savings. Interest is paid at the end of the term, with a full £3,600 deposit expected to earn around £136.50, bringing the total balance to approximately £3,736.50. Savers are allowed to withdraw money from the Zopa savings account at any time without penalty

First Direct is just behind with a 7% AER over 12 months. The account allows a monthly deposit of £300, which can also total up to £3,600 in savings over a year. At the end of the term, First Direct says savers will amass around £3,736.50, including £136.50 in interest.

Other providers offering competitive interest rates on regular accounts include Nationwide Building Society with a 6.5% AER, and Lloyds Bank with a 6.25% AER on its Club Lloyds account.