Regular savings accounts usually offer higher interest rates compared with other types of accounts and are best suited to those who are able to commit to paying in a regular amount each month.
Strict restrictions apply to these deals, for instance account holders must be aware of the maximum savings limit. If the saver fails to pay in the set amount, then they will find themselves receiving a lower rate.
Norwich & Peterborough Building Society – Family Regular Saver
This deal pays a rate of 6.00 per cent fixed for 12 months, after which it reverts to a variable rate. Investments range from £1 up to £1m, and the saver can pay in up to £250 a month. No notice is required to access funds, although the interest rate will revert to 3.00 per cent if the saver makes more than one withdrawal or misses payments during the 12 month period. This account is only available to savers with dependants aged up to 16 or 18 in full time education.
Abbey – First Home Saver Special Issue 1
Abbey's First Home Saver deal, designed to help young savers secure a foot on the property ladder, pays a variable rate of 5.00 per cent. Savers must make an initial deposit of between £100 and £5,000, after which they can invest between £100 and £300 a month. Access is on account closure, and account holders must have a mortgage interview with Abbey up to 90 days before the closure date. If payments are missed, 0.10 per cent will be paid for that month. The account can only be operated via Abbey branches.
Lloyds TSB – Monthly Saver
Lloyds TSB's regular saving account pays a fixed rate of 5.00 per cent until maturity. After the initial 12 months the account will transfer to an Easy Saver account, currently paying 1.60 per cent. This deal is fairly flexible, as it entitles account holders to unlimited withdrawals without notice or loss, although withdrawn funds cannot be replaced. Savers can invest between £25 up to £3,000, while a maximum amount of £250 can be paid in each month. The account is open to both new and existing Lloyds TSB current account holders.
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 Any products featured may be withdrawn by their provider or changed at any time.
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