If you’d like to squirrel a set amount away every month and get rewarded handsomely, then a regular savings account could be the option you’re looking for with rates up to 8%.
The Financial Services Compensation Scheme (FSCS) guarantees that it will step in to compensate the first £85,000 (£170,000 for a joint account) you have saved with a UK-authorised bank, building society or credit union in the event that the business goes bust.
Compare regular savings accounts
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Please note: This calculator provides estimations based on assumptions such as that you do not make withdrawals. You should always refer to the account provider for exact figures as they may vary from our results. Interest may be taxable.
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Putting your money into a regular savings account for a set time period is a great way to reach a savings goal. Numerous accounts are available, so use this guide to the best regular savings accounts to decide which one best suits your own needs and goals.
What is a regular savings account?
As the name suggests, a regular savings account involves setting money aside on a regular basis. So you pay money into the account every month, for a set period of time.
Both the amount of money and the time period required will vary depending on which provider you go with, but there are options where you can choose to save relatively small amounts (even as low as £1 a month).
Some people opt for this obligation to save money every month, as it’s a great way to build up savings at an affordable pace.
Can I access my money at any time with a regular savings account?
Potentially not. The downside of a regular savings account is that there may be restrictions on withdrawing the funds that you have saved. This is especially true of regular savings bonds.
Access and notice terms vary from product to product, and while it may be a simple case of instant access or no access at all, there can be several “inbetween” options too. For example, some products will allow you to make a limited number of withdrawals over a set timeframe. Others might require a specified number of days of notice to relinquish your funds.
If you do take money out when the account conditions don’t allow you to, or if you miss a regular savings payment, there may be financial penalties involved – typically foregoing interest.
Best regular savings accounts: how to choose
What turns out to be the “best” regular savings account for you will depend on your individual needs, so here are some pointers to consider before you choose one:
What’s the interest rate? This is the big one when you’re looking to generate a return on your savings (in addition to setting money aside), so research which provider is offering the best rate in the market.
Is the rate fixed or variable? Although savings rates don’t typically jump around from day to day, you may prefer the certainty of a fixed rate. Note that a fixed rate will only ever be fixed for a set period, and after that the revert rate is usually significantly worse (so fixed rates can be great for the short-term but require you to switch in the longer term).
Does the rate apply to the full balance? Commonly, the headline rate will apply to the first £x, and thereafter a lower rate will apply.
What monthly contributions are allowed? If there’s an obligation to pay a set amount every month, you need to make sure that’s affordable. Conversely, if there’s a maximum on what you can pay in each month, is it high enough? And can you make additional payments if you’re having a good month?
How easily can you access your funds? On some of the top-paying products, you may not be able to withdraw your savings for a set period of time (or will only have very limited access – say a set number of withdrawals per year or a set number of days notice required to make withdrawals), so be confident you can afford to tie your money up for the specified timeframe.
Am I eligible? In a few rare cases, you may need to be an existing customer, or perhaps hold your current account with the savings account provider.
How is the account opened and operated? Can you open the account online if you’d prefer not to visit a branch (or maybe you prefer the face-to-face experience)? Can you track and manage your account online or through an app?
Pros and cons of a regular savings account
Pros
The interest rates on offer can be better than for traditional, easy-access and notice savings accounts.
The need to pay money in regularly will help build up your savings pot. Regular savers are a great way to hit specific savings goals within a timeframe of your choosing.
The amount you’re required to save each month can be very low.
You may also be able to make additional contributions as and when it suits you.
Cons
You’ll usually have to make the regular contributions or face a penalty (generally forfeiting interest).
You’re often obliged to keep money locked in for a set period of time and might not be able to withdraw without a penalty.
The amount you can save each month will usually be capped.
Regular saver accounts rarely come with ISA wrappers.
An overview of our regular savings accounts comparison
Rates up to
8% AER
Number of accounts
84
Number of brands
48
Minimum monthly contribution
£0
Maximum monthly contribution
£3,000
Opening options
Website, mobile app, branch, post, telephone
Bottom line
A regular savings account can be a great option if you’re looking to get better at saving. But you’ll need to be prepared to put a set amount aside each month, typically for a year, and potentially be happy to leave those funds untouched for that time.
If you’d prefer to be able to access your funds, an easy access savings account will likely be more suitable. Or, if you have a lump sum to invest and you are happy to lock it away for a set time, a fixed rate bond might be better.
Frequently asked questions
Your provider should let you know around a month before this happens and the funds will usually be transferred to an easy access account.
Yes, as long as your provider is authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), your money will be protected under the Financial Services Compensation Scheme (FSCS). This means that up to £85,000 of your money will be protected per person, per banking institution in the event your bank went bust.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Michelle Stevens is a deputy editor at Finder, specialising in banking, credit, loans and mortgages. She has a journalism degree from the University of Sheffield and has been a journalist for 15 years, writing on topics including fintech, payment systems and retail. In her spare time, Michelle likes to travel, explore new foodie experiences and attempt to improve her own culinary skills. See full bio
Michelle's expertise
Michelle has written 127 Finder guides across topics including:
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