News
M&S Bank gets rid of its popular 5% savings account

M&S Bank has cut the rate on its popular regular savings account from 5% to 2.75%.
The M&S account was the last remaining 5% regular savings deal after HSBC and First Direct slashed rates last month.
Regular saver accounts are available to customers with a current account with the same institution.
With a regular saver account, you commit to paying in a certain amount each month. In return, the bank or building society gives you a higher interest rate than you’d get with their current account or ordinary savings account.
Existing M&S Bank customers will still receive 5% up to the end of their 12-month fixed term period.
Rachel Springall, finance expert at Moneyfacts, said: “Savings rates have been on a downward trend this year and this hasn’t escaped the attention of the regular savings account market, which isn’t usually very volatile.

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“Providers are uncomfortable offering lucrative interest rates to savers, including guaranteed fixed interest rates applied on regular savings accounts.”
Alternatives for savers
The only way to earn 5% now is to opt for a high interest FlexDirect current account with Nationwide Building Society.
If you want to stick with a regular savings account, Monmouthshire Building Society and Saffron Building Society pay 3% fixed for 12 months but you can only save a maximum of £300 and £250 a month respectively.
Kent Reliance pays 3% variable but this is only available in branch. You can, however, save up to £500 a month with this account.