A UK building society has launched a new regular saver offering one of the most competitive fixed rates going into 2026. Principality Building Society’s Christmas 2026 Regular Saver pays 6.5% interest, giving people a way to save towards a goal over the next year with a guaranteed return.
The account is designed for anyone who wants to put money aside each month without the risk of the rate changing. Savers can open it with as little as £1 and manage it online, in a branch or by post. The rate is fixed for 12 months, meaning it will not change before the account matures.
Principality says the account works best for people who want to save steadily and do not need access to their money in the meantime. Withdrawals are not allowed, but savers can close the account early if needed, and any interest earned will still be paid.
Customers can pay in up to £150 each calendar month, up to a maximum of £1,800.
The society says people do not need to make a payment every month, but once the total balance reaches £1,800, no further deposits can be made. The interest is calculated daily and paid at maturity.
The estimated balance after 12 months, based on paying in £150 a month from the start, is £1,863.15. Principality says this is only a guide, but it gives savers an idea of how much they could build up over a year.
Anyone aged 16 or over and living in the UK can apply. The account can also be opened jointly.
Principality warns that customers cannot hold more than one account from this issue number, and any duplicated accounts may be closed with the money returned.
The bond matures 12 months after opening. If a customer does not give any instructions at that point, the balance will be moved into Principality’s Instant Access Account or its nearest equivalent.
The building society will write to savers before maturity to confirm their options.
If customers earn more interest than their Personal Savings Allowance, they may need to pay tax directly to HMRC.
Principality also says that service charges may apply in certain situations, which are listed in its Tariff of Charges.
While Principality’s rate is one of the highest fixed regular saver deals right now, several other banks are offering strong variable easy-access accounts. Here are the top accounts at the time of writing.
Chase – 4.5%
Chase is offering 4.5% for new customers only, made up of a variable rate plus a 12-month bonus. It can be opened via the app with as little as £1, up to £3 million, and interest is paid monthly.
Cahoot – 4.4%
Cahoot, part of Santander, has a 4.4% account lasting one year, though the rate is variable. It accepts deposits from £1 to £500,000 and can be opened online.
LHV Bank – 4.25% (falling to 4% on January 5)
The account is opened via the bank’s app and pays monthly interest. The maximum balance is £100,000.
Spring by Paragon – 4.11%
Spring offers 4.11% on deposits from £10 to £500,000, with interest paid monthly.
Charter Savings Bank – 4.06%
This account pays interest either monthly or annually and accepts balances up to £1 million.
Tesco Bank – 4.05%
Tesco pays 4.05%, including a 12-month bonus. Customers can open it online with as little as £1.
Post Office – 4.05%
The Post Office account pays a bonus for the first year and allows deposits up to £2 million.
Virgin Money – 4.01%
Virgin Money pays 4.01%, but the rate falls after three withdrawals in a year. The account can be opened online with a maximum of £250,000.
