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. Most require a minimum amount to be deposited each month if you want to keep the headline rate, giving 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 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 per month.
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 deal from West Brom BS, a branch-based account that offers 3.30% on a minimum initial investment of just £10.
Twelve payments should be made per year (although a missed payment won't attract a penalty) and additional deposits are welcome, provided the monthly limit isn't exceeded. However, withdrawals won't be permitted, and savers should bear in mind that a maximum of just £1,200 can be invested during the term.
Kent Reliance secures a top-three spot with this branch-based account that 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.
Next up is this internet-operated account from Santander, which 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 saving schedule.
Nottingham Building Society comfortably makes the top five with its branch-based account 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.
Just squeezing into the top six is this account from Leek United BS, a branch-based deal that pays a variable rate of 2.25%. In an unusual move, 12 payments are required per year but there's no penalty for missing one, although it should be noted that additional payments won't be permitted and it isn't possible to amend contributions. Only one instant access withdrawal is allowed per year, and the account can only be closed at a set time, so savers will need to ensure that they can meet the terms.
However, as there's no end date or maximum investment limit, savers have the chance to rack up a significant pot over the years (although minimum and maximum monthly deposits still apply), which means it could be the ideal choice for those really wanting to get into the savings habit.
Information & Rates correct as at: 24.08.2016
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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