Regular Savings Accounts

Category: Savings
Date: 5/31/2008

What are Regular Savings Plans

• Regular Savings Plans allow you to save a regular monthly amount and you earn interest on your savings.
• There will be a minimum and maximum monthly amount which you can save into the account.
• Accounts may be on a fixed interest or variable interest basis

Who are they Suitable For?

• Regular savings accounts are suitable for anyone who has some extra money available to put away on a regular monthly basis.
• It is usually best to use up your annual Cash ISA allowance first because of the tax benefits available with these accounts.

What to Look Out For

• You'll need to make sure you understand all the terms of the account. Some have limits on the amount of withdrawals you can make.

• You need to pay in a minimum number of monthly payments each year to avoid a penalty of loss of interest or closure of the account.
• Cash ISAs are just like other forms of saving so you need to be aware of the following areas:

• Is the interest rate competitive?
• Is there a bonus included in the advertised interest rate?
• Is there a notice period required for withdrawals?

What to do next

Get a feel for the Key Factors to Consider when choosing a savings plan, so you can go in knowing what you're looking for.

Then compare regular savings accounts to find the best deals around with our best buy tables or product searches.

Moneyfacts.co.uk has also put together a range of savings guides if you are looking around for other types of savings plan.