Guide to savings accounts

7. Regular savings accounts

Regular savings accounts (also known as ‘monthly savers’ and ‘regular savers’) are not ‘regular’ in the sense that they are standard/basic savings accounts.

They are called ‘regular’ because, in order to qualify for the higher interest rates offered on the account, the saver must add a set amount of funds to the account on a monthly basis.
 

There are some key advantages that come with having a regular savings account:

• The interest rates are usually high

• Your savings grow quickly because a reasonable sum of money is transferred every month

• Interest rates on most regular savers are variable and if the base rate goes up so will the interest rate applied to your money
 

However, the disadvantage with these types of accounts is that they usually have more restrictions on them than any other type of account:

• Most don’t allow you to deposit a large sum to begin with or while the account is up and running

• The provider of the account will probably set a minimum and a maximum amount that you can deposit each month (maximum usually no more than £1000)

• Some providers may limit your access to the funds if you are to be given higher interest rates (most common regular savers are instant access but notice and term accounts are also available)

• To qualify for bonuses and higher interest rates, the provider may say that only ‘x’ amount of withdrawals are allowed in ‘x’ amount of time.

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• Next page: Instant access savings accounts
• Previous page: Accessing money in a savings account
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Guide contents

1. What is a savings account?
2. Savings accounts and interest rates
3. Tax and UK savings accounts
4. Opening a savings account
5. Adding money to a savings account
6. Accessing money in a savings account 
7. Regular savings accounts 
8. Instant access savings accounts 
9. Online savers
10. Individual savings accounts (ISAs) 
11. Helpful links for further savings information