Whether you are looking to boost your savings now that interest rates are higher, or just want a simple, reliable way to save over a fixed amount of time, a regular savings account could be a great option for you.
These accounts generally offer extremely competitive returns, but you must make sure you read the small print carefully, as there are often restrictions when it comes to how much you can pay in or withdraw. Here, we explain how regular savings accounts work, and where you can find the best rates currently available.
How does a regular savings account work?
Also known as monthly savings accounts, regular savings accounts are a type of savings account designed to encourage you to pay in a set amount every month, typically over a year.
Rachel Springall, finance expert at Moneyfacts.co.uk said: “Most of the top interest paying regular savings accounts available today are for existing customers or locals, available by post or by applying in branch, so savers would be wise to compare the terms carefully to see what is available to them.”
The bank will tend to set a limit on the amount you can deposit each month, which usually ranges from £250 up to £350, and may set a minimum required deposit for each month as well (this can be as low as £1, but is generally from £10 up to £25).
Regular savings accounts usually come with attractive interest rates as they only run for a short period, meaning you should hopefully start to see decent returns as the term progresses. Once the term is finished, you can either take all the money from the account as a lump sum or it will be automatically transferred by your savings provider to a standard savings account, usually paying a much lower rate of interest.
Bear in mind that some banks won’t let you withdraw your money from your regular savings account before the end of the term. Some banks will also only let you apply for a regular savings account with them if you already hold a current account there.
What are the best regular savings accounts right now?
The different products offered by banks and building societies are changing all the time, and it can be hard to know where to start looking. To help you get started or keep up to date, we keep this list updated each week with five of the best regular savings accounts on the market.
Principality 6 Month Regular Saver
AER: 8%
Minimum deposit per month: £1
Maximum deposit per month: £200
Access: No access within the term.
Additional info: Interest is paid on maturity.
Apply: Principality
The Co-operative Bank Regular Saver Issue 1
AER: 7%
Minimum deposit per month: £0
Maximum deposit per month: £250
Access: Easy access
Additional info: Customers must hold a Co-op current account to apply.
Apply: Co-op
First Direct Regular Saver account
AER: 7%
Minimum deposit per month: £25
Maximum deposit per month: £300
Access: You can only withdraw your money after 12 months.
Additional info: The account is available to existing First Direct 1st Account customers online. New, non-First Direct customers will need to open a 1st Account before they are then able to open the Regular Saver. If you save less than £300 in any given month, you can carry over any unused allowance to the following months. Interest is paid on maturity.
Apply: First Direct
Principality Christmas 2025 Regular Saver
AER: 7%
Minimum deposit per month: £0
Maximum deposit per month: £125
Access: This regular saver is designed to help you save for Christmas 2025. No Access within term.
Additional info: Interest is calculated daily and is paid on maturity.
Apply: Principality
Nationwide Flex Regular Saver Issue 3
AER: 6.50%
Minimum deposit per month: £0
Maximum deposit per month: £200
Access: 3 withdrawals allowed per year – the 4th withdrawal will result in your rate dropping to 2.15% AER/gross a year (variable) for the rest of the term.
Additional info: Only available to Nationwide current account holders – although this does not need to be your main current account. Interest is paid annually. After 12 months, your money will be moved into an instant access savings account with a lower rate of interest.
Apply: Nationwide
What are the best members-only regular savings accounts?
These savings accounts offer some of the best rates on the market right now – but you can only access them if you are a pre-existing member with one of these building societies.
The Co-Operative Bank
AER: 7%
Minimum deposit per month: £0
Maximum deposit per month: £250
Access: Withdrawals are allowed.
Additional info: This account is only available to Co-operative current account holders. Interest is calculated daily and will be paid into the account at the end of the 12 month term, save up to £250 per calendar month and earn 7% interest AER.
Apply: The Co-Operative Bank
First Direct Regular Saver Account
AER: 7%
Minimum deposit per month: £25
Maximum deposit per month: £300
Access: You can’t withdraw part of your account balance. If you close early you only get 2% interest for the time the money was in the account.
Additional info: For at least the duration of the Regular Saver, you must hold a first direct 1st Account from which to make your monthly payments.
Apply: First Direct
Should I get a regular savings account?
The choice of whether to apply for a regular savings account depends on your financial situation and savings goals. Generally speaking, they are suitable for savers who don’t have a big lump sum to put away, but would like to get into the habit of saving a small amount on a regular basis.
As mentioned, some regular savings accounts will not let you withdraw your money during the term of the account. So, if you are trying to build an emergency fund that can be accessed quickly, you should make sure the account you are looking at allows withdrawals. Alternatively, you might be better off looking at alternative ways of saving, such as an easy access savings account.
As the highest rates on regular savings accounts tend to be on products with 12-month terms, you may also be better off looking elsewhere if you are interested in tying up your savings for longer. Our guide Fixed rate savings bonds explained shows the best fixed rate savings accounts currently available over a range of different terms.
Read about all the different kinds of savings accounts in our article What are the different types of savings accounts?
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