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6 of the best regular savings accounts

6 of the best regular savings accounts

Category: Savings
22/08/2018

Regular savings accounts can provide a great way to start building up a savings pot, or for those with a set goal in mind who want to put some money away every month and get a great return. And, due to the recent increase in inflation, they remain one of the best ways to get a real return without setting your funds aside for several years in a long-term fixed rate bond.

Fledgling savers may be particularly taken in by the requirement to put a minimum amount away every month to keep the headline rate, which many regular savers require. This means that once opened, they will have no choice but to stick to their savings schedule.

This doesn't mean these accounts aren't enticing for the more experienced saver, too, 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, 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. In addition, many tend to be branch-based or postal-operated, which means 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!

With all this in mind, here are the current top-paying regular savings accounts that could give you the encouragement you need to build up a savings pot, with a great rate to boot.


AERDetails
Saffron BS
Saffron BS
12 Month Fixed Rate Regular Saver (Issue 3)
3.50%
  • 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.


AERDetails
Santander
Santander
Regular eSaver (Issue 6)
3.00%
  • 12-month 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, provided the monthly maximum isn't exceeded
  • Unlimited withdrawals permitted (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 maturity (must be compounded)
  • Linked product: must have a Santander current account for transactional purposes

Santander secures second place with this account, which pays a fixed 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 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.


AERDetails
Virgin Money
Virgin Money
Regular Saver Issue 12
3.00%
  • Rate fixed until 01.09.2019, when it will turn into a Loyalty Reward product
  • Minimum investment of £1, maximum £3,250
  • Minimum monthly deposit of £1 up to a maximum of £250 (contributions can be amended)
  • No minimum number of required payments
  • Additional payments allowed, provided the monthly maximum is not exceeded
  • Withdrawals permitted
  • Contributions can be made by standing order, cheque and cash
  • Branch-based
  • Interest paid yearly

Completing the top three is Virgin Money, with another account that pays 3.00%, but this time on a maximum investment of £3,250. There is no penalty for missing payments, so there's no pressure on savers to commit, but those who want to put away the maximum possible to get the highest interest return will want to add £250 per month anyway. This account can only be opened and operated in branch, and has a set end date of 1 September 2019.


AERDetails
Kent Reliance
Kent Reliance
1 Year Regular Savings Issue 3
3.00%
  • One-year bond
  • Variable rate
  • Minimum investment of £25, maximum £6,000
  • Minimum monthly deposit of £1 up to a maximum of £500 (contributions can be amended)
  • 12 payments per year required (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
  • Branch-based
  • Interest paid on maturity and must be compounded

Next up 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 are missed. However, 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 to do so.


AERDetails
Yorkshire BS
Yorkshire BS
Monthly Regular Saver Issue 2
2.50%
  • One-year bond
  • Variable rate
  • Account changes to Triple Access Saver after one year
  • Minimum investment of £10, maximum £3,000
  • No minimum monthly deposit but a maximum of £250 (contributions can be amended)
  • No minimum number of payments required
  • Additional payments allowed, provided the monthly maximum is not exceeded
  • One withdrawal day per anniversary year allowed
  • Contributions can be made by standing order, cheque and cash
  • Can be opened in branch or by post, and then managed online as well
  • Interest paid on anniversary of the account opening and must be compounded

In fifth place sits Yorkshire Building Society, with a deal that pays a variable rate of 2.50% from a minimum investment of £10. There's no minimum number of payments required, but note that you will only be able to make withdrawals on one day of your choosing per anniversary year, so think carefully before deciding to take money out of the account.


AERDetails
Lloyds
Lloyds Bank
Monthly Saver
2.50%
  • 12-month bond
  • Fixed rate
  • Minimum investment of £25, maximum £3,000
  • Minimum monthly deposit of £25 up to a maximum of £250 (contributions can be amended)
  • No minimum number of payments required
  • No additional payments permitted
  • Unlimited instant access withdrawals allowed
  • Contributions must be made via standing order
  • Account can be opened and operated in branch, over the phone, online and via mobile app
  • Interest paid on its anniversary and must be compounded
  • Linked account: Lloyds Bank current account required for access

Completing the top six is Lloyds Bank's Monthly Saver, which pays a fixed rate of 2.50% on a minimum deposit of £25. While you will be required to have or open a current account with the bank to get this saver, there is no set number of payments, so you can decide for yourself whether you want to put away the maximum of £250 each month. If you change your mind, you will be able to withdraw the funds easily, although further additions are not permitted.

Information and rates correct as at: 22.08.2018

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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