For savers on the hunt for competitive returns as  interest rates fall, Progressive Building Society is offering a regular savings account with a 7% AER.

Savers can deposit up to £300 into the account each month within its 12-month term, meaning a maximum of £3,600 can be put away in total. Regular savings accounts typically require people to deposit a set amount each month and make minimal to no withdrawals. However, savers have a bit more flexibility with Progressive Building Society, as people can access their pot once per day without facing a penalty.

The Rainy Day Saver Account can be opened and managed online with a minimum deposit of just £1.

To open it, savers must be 18 and over and UK resident. The account is available to both new and existing customers, and interest is credited on the anniversary of opening.

Based on the current interest rate, a £3,600 deposit is estimated to earn £137.68 over 12 months, bringing the total balance to £3,737.68

How does the account compare?

There are still several savings accounts available that beat the Bank of England’s base rate of 4%. Principality Building Society tops the table for regular savers with an Annual Equivalent Rate (AER) of 7.5%. The account runs for six months, and interest is paid on maturity.

Savers can invest up to £200 per month, which means the pot can grow to a total of £1,200, and withdrawals are not permitted until the account matures.

With a maximum monthly investment of £200, savers will accumulate £1,227.53, including £27.53 in interest. So, while it may have a market-leading AER, its six-month term limits the total interest earned.

Zopa offers a 7.1% AER over 12 months, with a maximum monthly limit of £300, allowing savers to build a total of £3,600 in savings. Interest is paid at the end of the term, with a full £3,600 deposit expected to earn around £137, bringing the total balance to approximately £3,737.

Savers are allowed to withdraw money from the Zopa savings account at any time without penalty.

First Direct places just behind with a 7% AER over 12 months. The account allows for a monthly deposit of £300, which can accumulate to a total of £3,600 in savings over the year. At the end of the term, First Direct says savers will amass around £3,736.50, including £136.50 in interest.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Savers will feel disheartened to see variable savings rates fall this year, but hopefully this does not damage their aspirations.

“Easy access accounts remain a haven for savers, as they are a great choice for an emergency fund. Those who use these for convenience do need to compare rates regularly, as they get hit when the Bank of England Base Rate gets cut.

“A convenient way for consumers to save their money is to stash it in a current account, or a simple saver with their bank, but that’s not the best choice. These simple savers can pay shockingly low rates, so in real terms, the cash is eroded by inflation.”

She added: “Taking time to shop around for the best rates and switching is essential to get any cash working harder.”