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6 of the best regular savings accounts

6 of the best regular savings accounts

Category: Savings

Updated: 21/12/2017
First Published: 20/12/2017

As inflation continues to rise, regular savings accounts are now the only ones that even get close to beating it. While there is a limit to how much you can put into these savings vehicles, they are a great way to start building up a savings pot.

They are particularly appealing to the fledgling saver, because they not only have enticingly high rates, but also usually a minimum amount that needs to be deposited each month to keep the headline rate. This should give you the motivation you need to never miss a deposit.

That doesn't mean they're not open to the more experienced saver, though, as they offer a great opportunity for anyone to save up for a specific goal, such as a new car, a wedding or next Christmas.

Of course, regular savings accounts do come with some restrictions. They 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, with a great rate to boot.

Top 6 regular savings accounts:


AER Details
Saffron BS
Saffron BS
12 Month Fixed Rate Regular Saver (Iss 3)
3.50%
AER
  • 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.

AER Details
Santander
Santander
Regular eSaver (Issue 6)
3.00%
AER
  • One-year 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 via Santander current account provided monthly maximum isn't exceeded
  • Unlimited withdrawals permitted via a Santander current account (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 yearly (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.

AER Details
Kent Reliance
Kent Reliance
1 Year Regular Savings - Issue 3
3.00%
AER
  • 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
  • Account must be managed in branch
  • Interest paid on maturity and must be compounded

Completing the top three 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 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.

AER Details
Leeds BS
Leeds BS
Regular Saver
(Issue 10)
2.55%
AER
  • Short-term bond (matures on 29.11.18)
  • Variable rate
  • Minimum investment of £50, maximum £3,000
  • No minimum monthly deposit, maximum of £250 (contributions can be amended)
  • No minimum number of payments required
  • Additional payments permitted, including top-ups to make up missed payments from previous months
  • One penalty-free withdrawal allowed until 29.11.18
  • Contributions can be made by standing order, cheque and cash
  • Can be opened online, in branch and by post, and then operated in branch and by post
  • Exceeding the maximum balance will result in a rate of 0.50% until balance is back within the set limit
  • Interest paid on maturity

Next up is this deal from Leeds BS, which pays a variable rate of 2.55% from a minimum investment of £50. For the height of flexibility, there's no minimum number of payments required and as a result no penalty for missing one. It's even possible to make additional payments to make up for previous months' missed savings.

The deal runs until a set date, with only one withdrawal allowed until then, so savers must ensure they won't need frequent access to their funds. The given date, 29 November 2018, could however make it ideal for a Christmas pot.

AER Details
The Nottingham BS
Nottingham BS
Special Saver
Issue 6
2.50%
AER
  • Short-term bond (matures on 28.02.19)
  • Variable rate
  • Minimum investment of £10, maximum £750,000
  • Minimum monthly deposit of £1 up to a maximum of £500 (contributions can be amended)
  • No minimum number of payments required
  • Unlimited additional payments permitted provided the monthly maximum limit is not exceeded
  • No withdrawals allowed
  • Contributions can be made by standing order, cheque and cash
  • Branch-based account
  • Interest paid yearly and must be compounded

Sitting in fifth place is this branch-based account from Nottingham BS, which pays a variable rate of 2.50%. While it has a highly appealing maximum investment limit for those with a large savings pot, only £500 can be added per month, so a maximum of £7,000 could be put away if you start saving the maximum amount from this month until the bond matures on 28 February 2019. This is still the highest amount featured in this top six, which could make it an appealing choice.

AER Details
Lloyds Bank
Lloyds Bank
Monthly Saver
2.50%
AER
  • 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 allowed
  • Instant access withdrawals permitted (withdrawn funds cannot be replaced)
  • Contributions can be made by standing order only
  • Can be opened over the phone, in branch and online, and then operated by smartphone app as well
  • Linked account: Lloyds current account required for access

Just squeezing into the top six is Lloyds Bank, with a deal that pays a fixed rate of 2.50% from a minimum investment of £25 to its new and existing current account customers.

There's no minimum number of payments required and unlimited withdrawals are allowed. Additional payments are not permitted, though, so while contributions can be amended, you would need to put in the full £250 in one go every month to take maximum advantage of the account.

Information & rates correct as at: 20/12/2017

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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