Regular Savings Accounts

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Regular Savings Accounts

Regular savings accounts are designed for people who want to put a regular amount of money into their savings account each month, which helps the amount of money being saved to increase relatively quickly.

A regular savings account can be opened with as little as £5 a month. Most accounts are variable which, if the base rate increases, will see the rate paid on these accounts increase within 30 days of the change.

However, banks will often only offer high-rate regular savings accounts to customers who have a current account with them as an incentive to build loyalty.

These accounts come with high rates of interest but also have far more restrictions put on them than any other type of account in order to obtain high rates of interest. For example, a limited number of withdrawals or no withdrawals and a minimum amount of deposit have to be made in order for the customer to receive the advertised rate of interest, which includes a large annual bonus.

In addition, most regular savings accounts do not allow customers to make lump sum deposits into the account and a minimum and maximum deposit limit is normally set by providers when an account is opened.

Most regular savings accounts are instant or easy access, although there are notice and fixed term accounts available.