In the current state of the cost of living, it's almost impossible to save up money. However, while many youngsters hesitate to save their extra pennies, there are ways to build up their savings without taking risks.

Digital lender Zopa is tempting savers with a "highly attractive" 7.1 per cent interest rate on its regular savings account, making its smart move as one of the best options available in today's savings market.

The account permits savers to stash away up to £300 monthly, with a maximum total deposit of £3,600 across 12 months. This is the best deal for those who would like to build up their savings without committing to a large sum upfront. Consequently, depositing the full £3,600 would generate approximately £137 in interest, boosting the total balance to roughly £3,737.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, told the Daily Express: "The regular savings account from Zopa offers a highly attractive rate of 6.87% gross (7.1% AER) and allows savers to invest £300 per month for a year."

Account holders require a Zopa bank account and Smart Saver account, whilst also being aged 18 or over and UK residents with UK tax residence, reports Birmingham Live.

This follows First Direct's launch of a fresh savings account boasting a 7 per cent AER/Gross fixed interest rate. The product enables savers to deposit between £25 and £300 monthly, with a maximum yearly contribution of £3,600.

For example, a customer depositing the maximum £300 per month would accumulate £3,600 after 12 months. With First Direct's 7 per cent rate, this would grow to £3,736.50, representing an additional £136.50 in interest.

Interest payments are made at the conclusion of the 12-month term, with calculations performed throughout the year. This comes after the Bank of England confirmed interest rates remained unchanged at 4 per cent.

With these great interest rates and accessible terms, Zopa and First Direct are positioning themselves as strong contenders in the savings market for this year, offering customer different ways to make money without taking unnecessary risks.

UK bank offering leading 7.1% interest savings account - The Mirror