Best regular savings accounts – October 2022


    Interest rates are not in line with inflation but they’re at a high enough point to charm savers, so instead of leaving your spare cash lying around, put it in one of the best regular savings accounts on the market. 

    The best rates are reaching 5.25% but some accounts require you to be an existing customer for a set amount of months. 

    It’s also worth thinking about your needs and what you want to commit to before going straight in.

    If you have a set amount of spare cash you want to put away monthly, then a regular saver is great. But if you want to be more flexible with your cash for future investments or short-term goals, then it’s worth checking our best savings accounts on the market right now. 

    Here are the best regular savings accounts on the market. 

    The best regular savings accounts 

    Regular savers come with a few more restrictions than easy access or fixed term savings accounts, such as how much you put in a month and access to withdrawals, so make sure to pick one that suits you. 

    Lloyds Bank Club Monthly Saver – 5.25%

    The best rate on the market, Lloyds is offering 5.25% on a maximum deposit of £400 per month, and to give some certainty the rate is fixed for one year. 

    As it’s a Club Saver, you need to hold a Lloyds current account already, be a Lloyds Club customer and you can’t have opened this same account in the last 12 months. 

    A minimum monthly payment of £25 is required and if you want to be flexible with your cash, this account has no restrictions on withdrawals. After one year you can search for a better rate as your account will become a standard saver. 

    Natwest Digital Regular Saver – 5.12%

    With just £1 you can open this Natwest Digital Regular Saver, but the 5.12% rate is only available on balances up to £1,000. After that the rate drops to 1% on balances between £1,000 and £5,000 and a further drop to 0.5% on balances above £5,000. So if you want to save more than £1,000, this might not be the best rate around. 

    You must be a Natwest current account holder to be eligible for this account and the maximum you can put it per month is £150. The regular saver does offer flexibility with withdrawals, allowing you to access your money whenever you want and the rate on this account is variable. 

    Royal Bank of Scotland Regular Saver – 5.12%

    Like the Natwest Regular Saver offering, the Royal Bank of Scotland 5.12% rate is only received on balances up to £1,000, 1% on balances between £1,000 and £5,000 and 0.5% on balances over £5,000. 

    The rate is variable so it can change at any time. To open this RBS saver you must hold a current account with them. A minimum of £150 per month is required and you can withdraw your cash whenever you need it. 

    Yorkshire Building Society Loyalty Regular eSaver – 5.00%

    This regular saver is still on the top end of the scale when it comes to rates as it offers 5.00% on savings, but it can change at any given time and there is a £500 maximum limit on deposits per month. 

    You need to have been a YBS account holder for at least 12 consecutive months to open the regular saver. There is a minimum deposit amount of £10 per month and you can only withdraw on one day per year based on the anniversary of your account opening. You risk being charged a penalty if you withdraw money more than what’s allowed. 

    Bank of Scotland Regular Saver –  4.50%

    With only a minimum monthly deposit of £25 and no restriction on withdrawals, you can take advantage of this BoS rate by putting away a maximum £250 a month. But note, whatever you withdraw can not be put back into your account. 

    The 4.50% rate is fixed for a year and then the account will change into an instant access savings account, when it will be a good time to search for a new and better rate. 

    First Direct Regular Saver – 3.50%

    This First Direct Regular Saver is offering 3.50% on savings up to £300 per month and it requires a nice and easy minimum deposit of £25. 

    The rate is fixed for a year but the account requires your cash to stay in the account for that period, as no withdrawals are permitted. If you withdraw the bank will pay interest up to that day and you’ll receive interest equivalent to its Savings Account or any account that replaces it.  

    How does a regular savings account work? 

    Compared to other types of saving accounts, there are more caveats to consider when opening a regular savings account. Here’s what to look out for. 

    Interest payments – You might find the best rate on the market but it’s down to how you want your interest to be paid, as some offer monthly interest and other banks offer it annually. 

    Existing customers – Most regular savers offer the best rates to their existing customers, just like in our best regular savings accounts list. So, it might be that you don’t get the top rate, but you get the best rate available to you, depending on what current accounts you hold. 

    Monthly payments – To receive the best rates, a lot of regular savers ask for a minimum payment each month. They may not be big as some only require £25 or even £10 a month, but it’s important you don’t forget to pay in as you could risk losing the account. 

    Your cash is protected – The Financial Services Compensation Scheme (FSCS) protects all of the banks mentioned in our best regular savers on balances up to £85,000. So it’s good to spread your money across your current accounts and savings to ensure you don’t have more than £85,000 in any one account.

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