6 of the best regular savings accounts - Savings - News - Moneyfacts

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6 of the best regular savings accounts

6 of the best regular savings accounts

Category: Savings

Updated: 24/11/2016
First Published: 24/11/2016

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 a new car, a wedding, next year's holiday or even next Christmas! If you opt for a 12-month account, you can start saving now and will have a tidy sum saved up in time for next year's festive shopping trip.

Just remember that most regular savers require a minimum amount to be deposited each month if you want to keep the headline rate, but this should give 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 do 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.

Top 6 regular savings accounts:


AER Details

Saffron BS
12 Month Fixed Rate Members' Regular Saver (Iss 3)
3.50% AER
  • 12-month bond
  • Fixed rate
  • Minimum investment of £10, maximum £2,400
  • 12 payments required per year
  • Minimum monthly deposit of £10 up to a maximum of £200 (contributions can be amended)
  • No missed payment penalty
  • Withdrawals and additional payments permitted
  • Contributions can be made by standing order, cheque or cash
  • Account can be managed in branch or by post
  • Interest paid on maturity

Comfortably taking the top spot is this branch and postal-operated deal from Saffron Building Society, 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.


AER Details

Kent Reliance
Regular Savings Issue 2
3.25% AER
  • One-year bond
  • Variable rate
  • Minimum investment of £25, maximum £6,000
  • Minimum monthly deposit of £25 up to a maximum of £500 (contributions can be amended)
  • 12 payments per year (account closed and transferred to an easy access savings account if a payment is missed)
  • Additional payments allowed provided monthly maximum not exceeded
  • Withdrawals permitted
  • Contributions can be made by direct debit, standing order, cheque or cash
  • Account must be managed in branch
  • Interest paid on maturity

In second place is this branch-based account from Kent Reliance, which pays a variable rate of 3.25% from a minimum investment of £25.

In true regular savings 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 through a number of methods and the chosen deposit amount 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.


AER Details

Santander
Regular eSaver
3.00% AER
  • One-year bond
  • Variable rate
  • Minimum investment of £1, maximum £2,400
  • No minimum monthly deposit, but a maximum of £200 (contributions cannot be amended)
  • No minimum number of payments required
  • Additional payments permitted via Santander current account provided monthly maximum isn't exceeded
  • Unlimited withdrawals permitted via a Santander current account (withdrawn funds cannot be replaced)
  • Contributions can be made by standing order only
  • Account can be opened in branch or by phone, then managed online or by mobile app
  • Interest paid on anniversary of account opening (must be compounded)
  • Linked product: must have a Santander current account for transactional purposes

Santander secures a top-three spot with this internet-operated account, a deal that pays a variable rate of 3.00% from a minimum investment of just £1. It boasts plenty of flexibility with no set number of payments required and no penalties for missing a monthly deposit. Unlimited withdrawals are also permitted, offering peace of mind to those who may not be sure they can commit to a rigorous savings schedule.


AER Details

Nottingham BS
Sports Aid Regular Saver
3.00% AER
  • Short-term bond (matures on 31.03.18)
  • Variable rate
  • Minimum investment of £10, maximum £4,750
  • No minimum monthly deposit, maximum of £250 (contributions can be amended)
  • No minimum number of payments required
  • Additional payments allowed (max £250)
  • No withdrawals permitted
  • Contributions can be made by direct debit, standing order, cheque or cash
  • Account must be managed in branch
  • Interest paid on maturity

Next up is this branch-based account from Nottingham Building Society that pays a variable rate of 3.00% from a minimum investment of £10. There's no requirement for a set number of payments to be made, but at the same time no withdrawals will be permitted, so savers will need to be comfortable that any payments they make can be locked away until maturity.


AER Details

Leeds BS
Regular Saver Issue 4
2.30% AER
  • Instant access account
  • Variable rate
  • Minimum investment of £50, maximum £6,000
  • Minimum monthly deposit of £50 up to a maximum of £250 (contributions can be amended)
  • 12 payments required per year
  • Missed payment penalty of 1.80% loss of interest
  • Additional payments not allowed
  • One withdrawal permitted per year (any more will result in 1.80% loss of interest)
  • Contributions can be made by standing order, cheque or cash
  • Account can be opened online, in branch or by post, then managed via the latter two channels
  • Interest paid yearly and must be compounded

Leeds Building Society comfortably makes the top five with this account that pays a variable rate of 2.30% from a minimum investment of £50.

Twelve payments must be made per year, with any missed payments resulting in the loss of 1.80% interest, the same penalty as applies if more than one withdrawal is made per year. However, there's no set term, and savers will be able to stash away an impressive £6,000 over the years.


AER Details

Virgin Money
Regular E-Saver Issue 2
2.25% AER
  • IShort-term bond (matures on 20.12.17)
  • Fixed rate
  • Minimum investment of £1, maximum of £3,500
  • Minimum monthly deposit of £1 up to a maximum of £250 (contributions can be amended)
  • No minimum number of payments required
  • Additional payments permitted
  • Unlimited withdrawals permitted
  • Contributions can be made by standing order, cheque or cash
  • Account must be managed online
  • Savers receive entries into a Virgin Money prize draw
  • Interest paid yearly

Just squeezing into the top six is this account from Virgin Money, an internet-operated deal that pays a fixed rate of 2.25% from a minimum investment of just £1.

In an unusual move, there's no minimum number of payments required per year and as a result no penalty for missing one, and it's even possible to make additional payments and amend contributions. Not only that, but the account permits unlimited withdrawals, offering the height of flexibility for savers not sure they can cope with the commitment of a traditional regular savings account.

Information & Rates correct as at: 23.11.2016

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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