Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
Regular savers can get a better return
High inflation and plummeting interest rates are leaving savers with a pretty raw deal. But, if you can commit to putting aside a set amount each month, you can often find higher rates in the regular savings account market.
Regular savings accounts require customers to make a contribution each month so are ideal for savers who wish to drip-feed cash into their account in a disciplined way.
However, these accounts will usually limit the number of withdrawals you can make each year and restrict the amount of money you can invest each month. Be careful not to miss a payment or exceed the limit on withdrawals as doing so can result in some harsh penalties. For example, your account could be closed, or interest could be docked.
Most accounts allow between one and three opportunities to access your money throughout the year, but several penalise you for just a single withdrawal. If you think you’ll need easier access to your money, take a look at our best rate instant-access accounts.
The market’s best regular savings accounts
The best regular savings accounts currently available are offered by Cambridge Building Society and Leeds Building Society, both paying 3.05%. The minimum monthly deposit is £20 and £50 respectively, while the maximum you can pay in is £250.
To qualify for some accounts you have to be an existing bank account customer, but the best rates on these tied products easily beat the rest of the market. At the top of the table are First Direct, HSBC and Marks & Spencer, who pay 6% on their tied regular savings accounts.
Bear in mind that once your account has matured, typically after a year, your balance will usually be transferred to an instant-access account with the same provider paying a much lower rate, so it’s essential that you keep an eye on the interest rate and switch to a more competitive account if necessary.
Find more Best Rate products
- Best Rate savings accounts – to find the best instant access, notice or fixed-rate savings accounts.
- Best Rate cash Isas – to find the best tax-free instant access, notice or fixed-rate cash Isa deals.
- Best Rate credit cards – to find the best cards to suit your requirements.
- Top unsecured personal loans – for borrowing £5,000 over 3-years or £10,000 over 5-years.
And finally… boost your savings
To find out if your savings account is paying a competitive interest rate, check out the Which? Savings Rate Booster tool and switch your account for a better deal if necessary.