Best regular saving accounts

If you’re looking for the best savings account and are able to stash money away each month, then you may be able to take advantage of better interest rates compared to standard accounts with a regular saver. We look at the best regular savings accounts and the interest you can earn.

Savers looking to put away something each month can earn as much as 5% in interest via a regular savings account.

The accounts come with specific requirements which include committing to a set amount each month or restrictions on withdrawals - and often, you will also need to be an existing customer. 

We explain below how these accounts work in more detail further below, but if you just want to know what the top rate is, then here is a list of the best regular savings accounts available now and the terms and conditions of each.

THE BEST REGULAR SAVINGS ACCOUNTS

What regular savings account you go for depends on how much you want to save and how much you can afford to pay in each month. Here are best regular savings accounts on the market.

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Yorkshire Building Society Loyalty Regular Saver

Yorkshire Building Society (opens in new tab)  | 5% | Minimum deposit £10, maximum deposit £500 per month 

Though 5% is a decent rate, there are limitations with the £500 maximum savings limit per month.

It is also only available to existing customers who have held an account with Yorkshire Building Society for at least 12 consecutive months.

The 5% interest is variable, so it could change at any given time.

Withdrawals can only be made once a year. Any more than that, and you will be charged a penalty.

The 5% interest means you earn £50 on a £1,000 deposit after one year.

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First Direct Regular Saver 

First Direct (opens in new tab) | 3.50% | Minimum deposit £25, maximum deposit £300 per month

To be eligible you must have a First Direct current account and save at least £25 into the account each month. Interest is paid after 12 months. 

The interest rate is fixed for one year and you must not make any withdrawals from this account; if you do, you lose the rate.

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Natwest Digital Regular Saver

Natwest (opens in new tab)| 3.30% (on balances up to £1,000) | No minimum deposit, maximum deposit £150 per month

This Natwest Digital Saver is variable to savers over age 16 who hold a hold a Natwest current account. 

The interest is variable, so it could change at any time.

The 3.30% interest is only paid on balances up to £1,000. Any savings between £1,001 and £5,000 will receive a lower interest rate of 0.30%. 

Interest is paid on the first business day of each month.

You can withdraw money without any penalty fee.

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RBS Digital Regular Saver

RBS (opens in new tab) | 3.30% (on balances up to £1,000) | No minimum deposit, maximum deposit £150 per month

This RBS Digital Saver is available to existing Natwest current account holders. 

Note, the interest is variable so it could change at any time, and the 3.30% interest is only paid on balances up to £1,000. Any savings between £1,001 and £5,000 will receive 0.30% interest. Interest is paid on the first business day of each month. You can withdraw money without any penalty fee.

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Nationwide Flex Regular Saver

Nationwide (opens in new tab) | 3% | No minimum deposit, maximum deposit £200 per month

This account can be opened online or on the app. To be eligible you must hold a Nationwide current account. The interest is variable for one year so it could change at any time. 

Although the rate is lower than Yorkshire Building Society and First Direct, you can make up to three withdrawal each year without a penalty; any more withdrawals after that will see the interest rate will drop to 1%.

HOW DOES A REGULAR SAVINGS ACCOUNT WORK?

Before you open a regular savings account, make sure it is suitable for your needs. Here's what you need to think about

Monthly payments

Regular savings accounts require you to pay in monthly to benefit from the promised rate. To make sure you do this, set up a standing order from your current account to shift money into the savings account each month.

If you miss a payment, you will lose the interest rate and in extreme cases, some bank may even close the savings account.

Check to see if there is a minimum you need to pay in each month. There are some regular savers that don’t require a monthly minimum payment. 

Interest payments

Interest on regular saver accounts is paid either monthly or annually. If monthly, you earn interest on whatever the balance is that month.

You may need a current account

In most cases, regular savings accounts are linked to a current account, so you may have to open a current account to take advantage of a certain rate.

You can have more than than one current account, so there's nothing stopping you from opening an account to benefit from a linked savings account. 

Keep an eye on the interest rate 

Rates normally change after a year or two and usually the current rate on your regular saver is for a limited time.

Make sure you review your account on a regular basis to keep up with the latest interest rate. We will keep this article updated with the latest rates regularly.

Your money is protected 

All the banks mentioned here are protected under the Financial Services Compensation Scheme (opens in new tab) (FSCS), which means up to £85,000 of your money is protected. 

The FSCS protection however, will cover both your current account and your savings accounts with any one bank - so you should avoid keeping more than £85,000 with one bank.