A regular saving account is a savings account that offers you a high interest rate in return for keeping your savings with them under a set of terms and conditions.
Even though the high interest that used to be associated with saving accounts is long gone, there are still some gems out there.
Here’s what you need to know about regular saving accounts before you start your saving journey.
1. Most regular saving accounts require you to put money in every month, and they offer higher interest rates compared to traditional fixed savings account.

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2. The reason why these accounts can pay these higher interest rates are because:
– These accounts usually only last a year.
– They limit the amount you can save.
– Some accounts require you to deposit your savings in one lump sum.
– Accounts paying the highest interest often require you to leave your savings untouched.
– Banks often use high interest savings accounts as a marketing tool to attract new customers. You would need to have the bank’s current account for these.
3. All interest from regular saving accounts is paid tax free due to personal saving allowance.
– Basic-rate taxpayers can earn £1000 tax free
– Higher-rate taxpayers can earn £500 tax free
– Additional-rate taxpayers get no allowance

4. There are different types of regular saving accounts available. Choose the one that is most suitable for you.
– Linked accounts: these require you to have a current account with the bank.
– Open-to-all accounts: these are available to all savers, but often have a lower interest rate.
– Easy access accounts: these allow you to withdraw money from your savings, however the number of withdrawals are usually limited.
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Recommended Linked Accounts
1. M&S Bank Monthly Saver
The M&S Bank Monthly Saver offers a 2.75% interest rate for 12 months with a minimum deposit of £25 a month and a maximum deposit of £250.
2. HSBC Regular Saver
The HSBC Regular Saver offers a 2.75 interest rate for 12 months with a minimum deposit of £25 a month and a maximum deposit of £250.
3. Santander Regular eSaver
The Santander Regular eSaver offers a 2.5% interest rate for 12 months with a minimum deposit of £1 a month and a maximum deposit of £200.
Open-To-All Accounts
1. Virgin Money Regular Saver
The Virgin Money Regular Saver account offers a 2% interest rate until 20 December 2020. You can pay in between £1-£250 each month.
The best features of this regular savings account is that there is no penalty if you miss a monthly payment, and you’re able to make unlimited withdrawals penalty free.
2. Principality Building Society
The Principality Building Society offers a 2.7% interest rate, and you can only deposit up to £125 each month. You can’t withdraw any funds unless you close the account.

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Top Tips
– Keep moving your money to get the most value out of it. When one offer ends, move your money to an account with another good offer.
– Always compare accounts to see what works best for you. There are so many offers on the market. Do your research!
– Be realistic! If you think you would need to access your funds over time, then go for an easy-access account. If you know you can’t afford to pay the minimum on one account, then go for an account that allows you to pay in what you can afford.
I’m all about people making the most of their money, because it’s ours. We’ve earned it and we should get the most value possible out of it.

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T K Williams-Nelson