Extra Reward Regular Saver account offers 5% interest – but you must meet eligibility rule | Personal Finance | Finance

The account is available with a minimum deposit of £100, with interest calculated daily from the very first day. It is a fixed interest rate, guaranteeing savers this market leading five percent until the account matures.

The Cambridge Building Society is an independent mutual society founded in 1850, helping individuals to fund their own homes and position them in the best possible way to save. 

Interest rates for the savings account is calculated on the account balance at the end of each day. 

It means savers can begin earning interest from the first day they put funds into their account until it matures one year later.

The account can be opened remotely via phone, post or in any Cambridge Building Society branch. 

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However, there is an eligibility rule which people should note.

To open the account, savers must have held a separate savings or mortgage account with the building society for at least three years.

The minimum deposit to open the account is £100 and people can save up to £3,000. 

Savers should also be wary that they can only hold one type of regular saver account with Cambridge Building Society.

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Savers can use cash, cheques and debit card payments at any Cambridge Building Society branches or transfer funds from their existing Cambridge Building Society accounts.

Withdrawals, however, are not permitted during the fixed term in order to receive the incredible interest rate. 

Closure of the account will be subjected to a 90 day interest penalty fee which will be taken from the saver’s capital balance if they have not built up enough interest at the time of closure.

When the account has matured, one year from the date of the first deposit, the balance, as well as the accrued interest, will be transferred into an appropriate instant access account. 

The interest rate on offer is also tax-free and savers will not need to pay tax on interest that may exceed their Personal Savings Allowance.

Savers are advised to read the terms and conditions for both this product and the Cambridge Building Society’s general savings terms and conditions before deciding whether to open their account.