A UK building society has launched a new regular saver that lets people put away small monthly amounts while earning one of the most competitive variable rates available. Newcastle Building Society’s Festive Regular Saver pays 6.5% interest, and is designed to help customers build up money ahead of next Christmas.

The account can be opened with as little as £1 and allows savers to deposit up to £150 each calendar month. Unlike many regular savings products, this one offers easy-access withdrawals, meaning people can take money out if they need to during the year. The interest rate is variable, so it can change; however, the account runs for a 12-month period before transitioning into an easy-access saver.

Newcastle Building Society says the account suits anyone who wants to save regularly but still wants access to their cash.

Interest is paid each year on the anniversary of opening, and customers can manage the account in branch, by post or by telephone.

The estimated balance after 12 months, based on paying in £150 a month from the start, is £1,863. This projection assumes the rate stays the same throughout the year and no withdrawals are made. 

The society says the figure is only a guide, as interest can change and individual circumstances vary.

People can open the account in a branch, and must deposit at least £1 to get started.

The maximum monthly deposit is £150, and the account matures after 12 months. 

At that point, the savings move automatically into an easy-access account unless the customer makes different arrangements.

Withdrawals are allowed at any time without penalty, which may appeal to savers who want flexibility while still earning a higher rate than most easy-access options. 

Interest is paid gross, meaning no tax is deducted, and customers are responsible for paying any tax due depending on their personal allowance.

Newcastle’s 6.5% variable rate is one of the strongest on the market, but several other accounts may appeal to savers depending on whether they want a fixed rate or easy access. Here are some of the best ones at the time of writing.

Principality Building Society – Christmas 2026 Regular Saver (6.5% fixed)

Principality offers a separate festive savings account paying 6.5% fixed for 12 months. Savers can put away up to £150 a month, up to a maximum of £1,800. Withdrawals are not allowed, but the account can be closed early if needed. Interest is paid at maturity, and the account can be opened online, in a branch or by post.

Santander – Edge Saver (Issue 5) – 6% variable

Santander’s Edge Saver pays 6% variable on balances up to £4,000. The rate includes a 2.5% bonus for the first year. It requires at least £1 to open and has no notice period. It is only available to Santander Edge or Santander Edge Explorer current account customers. Withdrawals are permitted.

Chase – Saver With Boosted Rate – 4.50% variable

Chase offers 4.5% variable for 12 months on its easy access savings account, including a 2.25% bonus for new current account customers. It allows deposits up to £3 million and pays interest monthly. Withdrawals are permitted.

Sidekick – Multi Shield – 4.23% variable

Sidekick’s easy access account pays 4.23% variable but requires a far larger deposit, from £10,000 to £120,000.

With several competitive options available, savers are encouraged to compare rates, check conditions and choose an account that suits their plans for the year ahead.