Earn 7% interest on savings — but there’s a catch

The market-leading rate is provided by First Direct, but to qualify you must open a current account with the bank
The market-leading rate is provided by First Direct, but to qualify you must open a current account with the bank
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Banks have been slow to pass on higher interest rates to savers, as inflation eats away at hard-earned nest eggs. But savers tempted by some attractive rates on the market might find their money works harder elsewhere.

First Direct pays a market-leading rate of 7 per cent on its regular saver account, but you will need to open a current account with the bank to qualify. Customers must save at least £25 each month but you cannot pay in more than £300 a month — so it may not suit those looking to put away large sums.

If you put aside the maximum amount, you would earn £136.50 interest after a year, giving you a total balance of £3,736.50.

The rate is fixed for a