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:
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.
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.
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.
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.
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.
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.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.