Review of the Principality Building Society One Year Regular Saver Bond

Written by Karen Bryan

principality-bs-logoThe Principality Building Society One Year Regular Saver Bond (Issue 17) pays a fixed rate of interest of 2%.

The minimum required to open the regular saver account is £20. The maximum monthly investment is £500. You can make more than one monthly payment, as long as you don’t exceed the £500 monthly limit.

The fact that I could open the Principality regular saver account online, plus the £500 monthly maximum deposit were appealing to me. Quite a few of the highest rate regular saver accounts need to be opened by post or in a branch and have maximum monthly deposits of around £250.

My strategy with the Principality Building Society One Year Regular Saver Bond is to put in as much money as possible in the early months, in order to earn the 2% rate of interest for as long as possible on the highest possible balance.

After reading the regular saver’s terms and conditions. I still wasn’t sure if you were required to make at least a £20 deposit into the account every month. I phoned the Principality to ask about this. The very helpful customer service rep told me that there isn’t any penalty if you don’t make a deposit every month.

You need to be sure that you won’t need access to any cash deposited into the Principality One Year Regular Saver Bond before the end of the term. Withdrawals are not permitted. If you need access to your cash then you will need to close the regular saver account, Closure will result in you earning the rate of interest paid on the Principality Instant Access account, currently a paltry 0.10%.