We know it can be difficult to get into the habit of saving. Other spending can easily get in the way, and before you know it, it's the end of the month and you haven't put any of your disposable income into a savings account. Well, that's where regular savers could come in...
These accounts could be the ideal solution to your savings dilemma. They can be a great way to get you into the habit of squirreling away your cash, and can be particularly suitable if you've got a specific goal in mind, such as next year's summer holiday. Most require a minimum amount to be deposited each month if you want to keep the headline rate, giving you the motivation you need to never miss a deposit, with the trade-off being that the rates are often higher than you could get elsewhere.
Of course, they come with some restrictions. Regular savings accounts tend to have a maximum savings level as well as a minimum, so you can't expect to put your life savings in and get an above-average rate. Many tend to be branch-based or postal-operated, too, so they're not ideal if you want to carry out transactions online. However, if you're happy to sacrifice some convenience for a great rate, you can't go wrong!
So, with that in mind, here are the current top-paying regular savings accounts that could give you the encouragement you need with a great rate to boot.
Comfortably taking the top spot is this internet-operated account from Santander, which pays a market-leading rate of 5.00% from a minimum investment of just £1.
Not only does it offer a fantastic rate, but there's no set number of payments required and no penalties for missing a monthly deposit. Unlimited withdrawals are also permitted, offering welcome flexibility to those who may not be sure they can commit to a rigorous saving schedule.
In second place is this branch-based account from Kent Reliance, paying a highly competitive variable rate of 4.00% from a minimum investment of £25.
In true regular saving account style, the account will be closed if one of the 12 required payments is missed, but savers can still benefit from a certain degree of flexibility: additional payments and penalty-free withdrawals are allowed, and you can stash away an impressive £6,000 by the end of the term should you wish.
Contributions can be made via a number of channels for added convenience, and the amount you choose to deposit can be amended at any time, but savers must be certain that they can deposit at least £25 a month in order to benefit from the deal.
This branch and postal-operated deal from Saffron Building Society easily secures a top-three spot, paying 3.50% on maturity on a minimum investment of just £10.
Additional payments and withdrawals are permitted at any time, and although 12 deposits are required per year, there's no penalty should you miss a monthly payment. Contributions can be amended to suit your needs, but it should be noted that the account has a fairly low investment allowance of £2,400.
Next up is this deal from West Brom BS, a branch-based account that offers 3.30% on a minimum initial investment of just £10.
Twelve payments should be made per year (although a missed payment won't attract a penalty) and additional deposits are welcome, provided the monthly limit isn't exceeded. However, withdrawals won't be permitted, and savers should bear in mind that a maximum of just £1,200 can be invested during the term.
Nottingham Building Society comfortably makes the top five with its branch-based account that pays a variable rate of 3.10% from a minimum investment of £10.
At least 11 payments must be made per year and missing one will result in a significant rate cut. The same penalty applies should you make more than two withdrawals per year, so careful management will be required to take full advantage of the offer. However, as there's no end date to the account, savers have the chance to rack up a significant pot over the years (although minimum and maximum monthly deposits still apply), and the instant access nature offers some welcome flexibility.
Just squeezing into the top six is this account from Leeds BS, a branch and postal-operated deal that pays a variable rate of 3.05%.
Once again, this is a true regular saver with 12 payments required per year, and there'll be a hefty loss of interest penalty (1.80%) for missed payments. Additional monthly deposits aren't permitted, and only one instant access withdrawal is allowed per year (exceeding this will result in the same 1.80% loss of interest), so savers will need to ensure that they can stick to the terms. Nonetheless, it could be the ideal choice for those really wanting to get into the savings habit, particularly as there's no end date or maximum investment limit.
Information & Rates correct as at: 02.06.2016
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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