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6 of the best regular savings accounts

6 of the best regular savings accounts

Category: Savings

Updated: 09/03/2017
First Published: 09/03/2017

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, or next year's holiday - it's never too early to start planning!

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. Indeed, these are the only deals that consistently provide inflation-beating returns without needing to lock your money away for years to come, so for many savers, they could be ideal!

Of course, regular savings accounts do come with some restrictions. They 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. In addition, many tend to be branch-based or postal-operated, too, so they're not ideal if you want to carry out transactions online, and they often don't let you access your cash for a set period. 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 before becoming branch-based
  • Interest paid on maturity

Comfortably taking the top spot is this branch-based deal from Saffron Building Society that pays 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 3
3.00% 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 3.00% 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 Issue 3
2.50% 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 and 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 2.50% 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
Tiger Regular Saver
2.50% AER
  • Short-term bond (matures on 30.06.18)
  • 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
  • 0.25% paid to Leicester Tiger Rugby Club yearly (based on account balance at the end of each month)

Next up is this branch-based account from Nottingham Building Society that pays a variable rate of 2.50% 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.

This deal could be particularly suited to loyal followers of Leicester Tigers Rugby Club, as 0.25% of the balance (based on the account balance at the end of each month) will be donated to the club on an annual basis.


AER Details

Virgin Money
Regular E-Saver Issue 3
2.25% AER
  • Short-term bond (matures on 20.02.18)
  • 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 allowed
  • Contributions can be made by standing order, cheque and cash
  • Account must be managed online
  • Savers receive entries into a Virgin Money prize draw
  • Interest paid yearly

Virgin Money comfortably makes the top five with this 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 - as well as entries into a regular prize draw, offering the chance for even greater benefit.


AER Details

Virgin Money
Matchday E-Saver
2.25% AER
  • IShort-term bond (matures on 20.03.18)
  • 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
  • For the first three months, a £7 voucher (to spend at Old Trafford) will be awarded for every £100 deposited per calendar month. Savers will also earn entries to "United Rewards" throughout the account's term
  • Interest paid yearly

Virgin Money has managed to get a second account in the charts, this time with a deal that could be perfect for fans of Manchester United football club.

Its core features mirror that of the previous product - it's an internet-operated account that pays 2.25% from £1, with no minimum number of payments required and unlimited access to cash - but it offers additional benefits in the form of a £7 Old Trafford voucher if £100 is deposited each calendar month (only available for the first three months), as well as entries into a prize draw for exclusive merchandise, tickets and experiences.

Information & Rates correct as at: 09.03.2017

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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