A new market-leading savings account has launched with an inflation-beating interest rate of 9 per cent.
Saffron Building Society has today launched a limited edition savings account available for its members on a first-come, first-served basis.
The Members’ Month Loyalty Saver is the only account to beat the current inflation rate of 8.7 per cent and is double the Bank of England’s current 4.5 per cent base rate.
However, there is a catch. As the name suggests, it is only open to people who have been members of the Saffron Building Society who joined on or before 1 June 2022.
The savings account can be opened with a minimum deposit of £1 and withdrawals can only be made once a month. Monthly payments must not exceed £50, meaning a total of £600 can be paid in over the term.
The product is available to open online or in branch and marks the start of the Society’s first-ever Members’ Month, which runs throughout June which includes running a daily £100 prize draw for members.
Colin Field, Chief Executive Officer at Saffron Building Society said: “Members are the heart and soul of the Society and we are delighted to have this opportunity to reward, surprise, and delight them.”
However, experts say the benefits may not be as good as they seem.
Andrew Hagger of Moneycomms said: “It’s an eye catching rate but unfortunately the deal is only open to existing members of Saffron. Also the most you can save is £50 per month, so while it is a great rate, the benefits are quite limited.”
The account has been launched after bank bosses have been quizzed on why they have not been passing on higher interest rates to customers in the form of higher savings rates but have been with increased monthly mortgage repayments.
The Treasury Select Committee wrote to high street banks to ask them what proportion of their interest rate rises are passed on to their savings customers.
The Financial Conduct Authority (FCA) also wrote to banks asking them to justify their lower savings rates, and threatened to take ‘onerous interventions’ if firms could not justify passing on interest rates.