Best regular savings accounts - savers can get interest rates up to seven per cent

Savings in pictures

Regular savings accounts often offer higher interest rates than other accounts

PA
Jessica Sheldon

By Jessica Sheldon


Published: 10/04/2024

- 16:26

Updated: 10/04/2024

- 16:26

Regular savings accounts can offer some of the highest interest rates than other accounts, but there are certain restrictions on them

  • The highest regular savings account currently pays an interest rate of seven per cent
  • Regular savings accounts can help savers to get into a habit of putting money away each month
  • Some of the interest rates are fixed for a specific term while others are variable, meaning they can change
  • GB News has compiled a list of the best regular savings accounts in terms of highest interest rates right now, based on data from money comparison website Moneyfacts

Regular savings accounts are one option when it comes to setting aside savings each month, although restrictions apply.

For instance, customers might only be able to pay a certain amount in each month, or be unable to access the cash until the end of the term.

Other limitations can include penalties for savers who miss a monthly payment, so it’s important to check the terms and conditions of the account.

Among cash savings accounts though, regular savings typically pay higher rates of interest. However, this interest rate will typically only apply to smaller savings pots, due to deposit limits.

Savers may want to check to see if they are eligible for Help to Save, which offers a 50 per cent bonus of up to £1,200 over four years.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said hundreds of thousands of people benefit from this account. She added: "It’s a great way of saving whatever you can and the government will top up your savings by 50 per cent.”

first direct and HSBC logo on account statement

first direct is currently offering seven per cent AER interest rate on its regular savings account

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From deposit limits to withdrawal restrictions, it’s important savers check the type of regular savings account is right for them.

Some accounts offer high-interest rates but are only open to existing members, so it’s worth checking eligibility.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, told GB News: “Saving little and often towards a specific goal or even to amass enough cash to cover three months of essential expenses is a sensible plan for consumers to consider.

"A fixed term regular savings account is a great choice and encourages the savings habit as it typically spurs savers to put some cash aside each month. Savers could then reach their savings goals quicker than expected with careful planning."

What are the best interest rates for regular savings accounts?

For those who are simply looking for the highest interest rates on regular savings right now, money comparison website Moneyfactscompare.co.uk has ranked the options.

The Co-operative Bank is currently offering seven per cent AER/gross on its 12-month bond. Interest is paid on maturity and the account can be opened with £1.

The telephone and internet-based bank first direct comes joint top of the list, with the first direct Regular Saver Account.

It currently pays seven per cent AER. Savers need to deposit between £25 to £300 into the account each month, for a fixed 12-month term.

Nationwide Building Society is paying 6.5 per cent AER via the Flex Regular Saver.

LATEST DEVELOPMENTS:

Nationwide slipped from the top spot earlier this year when it replaced its market-leading rate with a 6.5 per cent option.

The building society previously led the way with an eight per cent rate on its Flex Regular Saver Issue 2.

Lloyds Bank's Club Lloyds Monthly Saver comes in fourth, offering 6.25 per cent AER.

Savers put in between £25 to £400 each month by one standing order or bank transfer, but they can subsequently top the monthly deposit up to the £400 limit.

The NatWest Digital Regular Saver is offering a 6.17 per cent AER on savings up to £5,000.

Any savings in the account over this limit will earn a 1.41 per cent AER interest rate.

Savers can put away between £1 and £150 a month and withdraw the savings whenever they want.

Royal Bank of Scotland, which is part of the NatWest group, also offers a 6.17 per cent AER on its Digital Regular Saver.

Bank of England base rate chart shows bank rate hikes from 2017 to 2023

UK interest rates have risen following the recent 14 consecutive Bank of England base rate increases

GB NEWS

Best interest rates on regular savings accounts

  • first direct Regular Saver Account - seven per cent
  • The Co-operative Bank Regular Saver Issue 1 - seven per cent
  • Nationwide Building Society Flex Regular Saver Issue 2 - 6.5 per cent
  • Lloyds Bank Club Lloyds Monthly Saver - 6.25 per cent
  • NatWest Digital Regular Saver - 6.17 per cent/6.00 per cent gross
  • Royal Bank of Scotland Digital Regular Saver - 6.17 per cent/6.00 per cent gross
  • Principality Building Society 2 Year Healthy Habits Saver Bond - 6.00 per cent AER/gross
  • TSB Monthly Saver - six per cent
  • West Brom Building Society Fixed Rate Regular Saver (Issue 7) - six per cent
  • Saffron Building Society Small Saver - 5.75 per cent AER/gross
  • Bank of Scotland Monthly Saver - 5.5 per cent
  • Principality Building Society 1 Year Regular Saver Bond Issue 33 - 5.50 per cent AER/gross
  • Halifax Regular Saver - 5.5 per cent
Skipton Building Society is offering a new issue of its Member Regular Saver, which pays seven per cent, although only members can apply. The previous issue, the Member Regular Saver Issue 2, offered 7.5 per cent.

List according to Moneyfactscompare.co.uk, rates correct at the time of writing

MoneyNatWestSavingsLloyds BankHSBCInterest ratesYorkshire Building SocietyBank of England
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