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6 of the best regular savings accounts

6 of the best regular savings accounts

Category: Savings

Updated: 25/05/2017
First Published: 25/05/2017

Earlier this week, the regular savings market was seriously shaken up by the launch of two new deals paying 4% - but thanks to overwhelming demand, they didn't last long! Both were withdrawn less than two days after being launched, but don't despair: regular savings accounts still offer some of the best rates available, so this is an ideal opportunity to see what else is out there.

After all, 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. That's where regular savers could come in, offering the perfect 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, this is one of the few sectors that can provide an inflation-beating returns so for many savers, these accounts 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 £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 opened and operated in branch and by post
  • Interest paid on maturity

Comfortably taking the top spot is this deal from Saffron Building Society that pays an inflation-beating 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 one. 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 and 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 5
2.50% AER
  • One-year bond
  • Fixed 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 online, 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 fixed 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

Chorley & District BS
12 Month Regular Saver Bond
2.50% AER
  • One-year bond
  • Variable rate
  • Minimum investment of £1, maximum £6,000
  • No minimum monthly deposit, maximum of £500 (contributions can be amended)
  • No minimum number of payments required, however payments cannot be backdated
  • Additional payments allowed (provided monthly maximum of £500 isn't exceeded)
  • No withdrawals permitted
  • Contributions can be made by standing order, cheque and cash, and additional payments can be made by bank transfer as well
  • Account can be managed in branch and by post
  • Interest paid on maturity

Next up is this branch and postal-operated account from Chorley & District Building Society that pays a variable rate of 2.50% from a minimum investment of £1. 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 with the fact that any payments they make would be locked away until maturity.


AER Details

Virgin Money
Regular E-Saver Issue 5
2.25% AER
  • Short-term bond (matures on 20.06.18)
  • 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

Nationwide BS
Matchday E-Saver
2.00% AER
  • One-year bond
  • Variable rate
  • Minimum investment of £1, maximum of £6,000
  • Minimum monthly deposit of £1 up to a maximum of £500 (contributions cannot be amended)
  • No minimum number of payments required
  • Additional payments permitted
  • Unlimited instant access withdrawals permitted
  • Contributions can be made by standing order, cheque and cash
  • Account can be managed in branch, online and by mobile app
  • Interest paid yearly on anniversary

Just squeezing into the top six is this deal from Nationwide, a 12-month bond that pays a variable rate of 2.00%. It can be opened with just £1, but allows up to £6,000 to be squirreled away in the year, with no minimum number of payments required and instant access withdrawals permitted. Contributions can't be amended once arranged, but it is possible to make additional payments should you wish.

Information & Rates correct as at: 25.05.2017

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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