Regular savings accounts tend to pay higher rates of return than other types of accounts, but often come with a range of restrictions. Savers will need to commit to paying in a fixed deposit each month, while others have limitations on how many withdrawals are allowed within the year. Failure to meet these conditions can result in penalties such as loss of interest or reverting to a lower paying account. These accounts are best suited to savers who are disciplined with their cash and can commit to paying in a fixed amount on a monthly basis. Here are the current top three accounts.
Stroud & Swindon Building Society – Regular Saver Issue 2
This account pays a variable rate of 4.50pc. Between £10 and £250 must be invested each month, although the contributions cannot be amended once set. Savers will incur a 2.50pc loss of interest for missed payments. One instant access, penalty free withdrawal is allowed within a year and the minimum amount allowed is £100. If more than one withdrawal is made the 2.50pc loss of interest penalty also applies. The account can be operated by savers aged 18 and over, in branch, by post or telephone, although the initial investment must be made by cheque.
Loughborough Building Society – Regular Savers Account + 3
Loughborough Building Society's regular saver account pays a rate of 4.00pc. Deposits of between £10 and £500 must be made eleven out of twelve months. One instant access, penalty free withdrawal is allowed each year. Failure to make payments each month or if more than one withdrawal is made within the year will result in a loss of 1.00pc in interest. Contributions can be amended each year on the anniversary of the account opening. The account can be operated in branch or by post by savers aged 16 and over.
Norwich & Peterborough Building Society – Regular Saver
This account pays a rate of 4.00pc including a bonus of 3.00pc for 12 months. The gross rate is also guaranteed to be fixed at 4.00pc for 12 months. Savers must invest between £1 and £250 each month, although contributions can be amended up to a maximum of £250 a month. One instant access, penalty free withdrawal is allowed each year, although a 1.5pc loss of interest penalty will be incurred if this is exceeded. The penalty also applies if payments are missed or if the account is closed. The account can be operated by savers of all ages, in branch, by post or telephone and online.
Find the best savings accounts for you - Compare regular savings accounts
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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