Ford Money offers accounts paying 4% interest for savers

Savers are to be offered new accounts paying 4% interest by Ford Money.

The regular saver and regular saver cash Isa accounts will launch on May 22, paying a fixed interest rate of 4% for 12 months.

Account holders will be able to save between £25 and £250 each month over the 12-month term. Savers can also vary the amount they save every month and will not be penalised if they do not make deposits every month.

The new regular saver products are available to all savers, rather than just those who already hold a Ford Money account.

Ford Money, a new UK savings offering from Ford Motor Company's financial services business, launched in April.

The move comes at a time when savers are struggling to make real returns on their cash pots amid rising living costs.

The Consumer Price Index (CPI) measure of inflation rose to 2.7% in April, above predictions of 2.6%.