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6 of the best regular savings accounts

6 of the best regular savings accounts

Category: Savings

Updated: 22/06/2017
First Published: 22/06/2017

Earlier this week, we talked about regular savers that pay up to 5% if you're willing to switch your current account. That doesn't mean, however, that unrestricted regular savings accounts should be ignored. Indeed, they make up one of the few sectors that can provide an inflation-beating return, so for many savers, these accounts could be ideal.

The biggest advantage of regular savings accounts is that they can help those who find it difficult to get into the habit of saving. That's why they still thankfully pay enticingly high rates, and why they allow you to squirrel away only a certain amount each month – nothing that could be too overwhelming for the fledgling saver.

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!

Given that as well as a maximum most regular savers typically require a minimum amount to be deposited each month if you want to keep the headline rate, this should give you the motivation you need to never miss a deposit.

That doesn't mean they're not open to the more experienced saver, though, as they offer a great opportunity for anyone to save up for a specific goal, such as a new car, a wedding or next year's holiday.

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, 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

TSB
12 Month Fixed Rate 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 and cash
  • Account must be opened in branch and can then be operated by post as well (existing members can also apply by post)
  • Interest paid on maturity

Comfortably taking the top spot is this deal from Saffron Building Society, which 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

TSB
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 the monthly maximum is 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

TSB
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 penalty 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

TSB
Regular E-Saver Issue 5

2.25% AER
  • Short-term bond (matures on 20/06/18)
  • Fixed rate
  • Minimum investment of £1, maximum £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
  • Online-only
  • Interest paid on anniversary of account opening (must be compounded)
  • Interest paid yearly

Next up is this internet-operated deal from Virgin Money, which pays a fixed rate of 2.25% from a minimum investment of just £1.

For the height of flexibility, 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 – a great boon 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, giving savers the chance for even greater benefit.

AER
Details

TSB
Regular Saver

2.00% AER
  • One-year bond
  • Variable rate
  • Minimum investment of £1, maximum £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 on anniversary

Sitting in fifth place is this deal from Nationwide, a one-year bond that pays a variable rate of 2.00%. It can be opened with just £1, but allows up to £6,000 to be squirrelled away over 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.

AER
Details

TSB
Adults' Fixed Rate Regular Saver (Issue 4)

2.00% AER
  • 12-month bond
  • Fixed rate
  • Minimum investment of £10, maximum £1,200
  • Minimum monthly deposit of £10 up to a maximum of £100 (contributions can be amended)
  • 12 payments required per year
  • No missed payment penalty
  • Unlimited additional payments allowed (provided monthly maximum isn't exceeded)
  • No withdrawals permitted
  • Contributions can be made by standing order, cheque and cash
  • Branch-based account
  • Interest paid on maturity

Just squeezing into the top six is this branch-based account from West Brom Building Society that pays a fixed rate of 2.00% from a minimum investment of £10.

While 12 annual payments are required on this 12-month bond, there's no penalty for missing one (or even all). Additional payments are allowed, though the account has a low maximum limit of £1,200 and savers should note that no withdrawals are permitted, so they will need to be comfortable with the fact that any payments they make would be locked away until maturity.

Information & Rates correct as at: 21/06/2017

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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