A comprehensive list of the new UK tax allowances and thresholds for 2020 / 2021
Both NatWest and Royal Bank of Scotland have launched regular savings accounts paying a chart-topping rate of 3.00% gross today.
The new Digital Regular Saver accounts pay 3.00% gross monthly on balances of up to £1,000, but the rate drops to 0.01% gross on the portion of balance over £1,000. These accounts are only available to customers who hold a current account with the specific bank they are opening the regular savings account with, and if a current account isn’t held one can be opened at the same time as the regular savings account. There is no initial minimum deposit amount required to open the Digital Regular Savers, and they allow monthly deposits of up to £50 with no minimum monthly deposit needed. These accounts also allow unlimited withdrawals.
While NatWest and Royal Bank of Scotland have shot to the top of the regular savings chart with the launch of these accounts, Cambridge Building Society also pays 3.00% gross on maturity on its Loyalty Regular Saver. The Cambridge Building Society regular savings account is only available to existing members who have held a mortgage or savings account with Cambridge Building Society for at least 12 months. This account requires a £100 minimum deposit to open and savers can make monthly deposits of between £1 and £100, but there is no penalty for missing a payment and a minimum number is not required in a year. Withdrawals are not permitted but earlier access to funds is allowed on closure of the account and subject to 90 days’ loss of interest.
The launch of the new NatWest and Royal Bank of Scotland will be welcome news to savers looking for a competitive savings account, especially as the only other account paying 3.00% has strict opening restrictions. As well as this, the fact that they allow unlimited withdrawals at a time when many savers are reluctant to lock their money into accounts without being able to access funds will make these accounts highly attractive.
Savers should be aware when looking at regular savings accounts that interest is calculated differently than on standard savings accounts. To find out more about how interest is calculated on regular savings accounts read our guide Why do regular savings accounts seem to pay the highest rates?. Saying this, a regular savings account is a great option for those wanting to start a regular savings habit or who are aiming to save towards a specific goal such as a holiday or Christmas.
To compare the rates of all regular savings accounts visit our regular savings account comparison chart.
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.
