The interest paid is normally higher than normal saving accounts, but you’re capped at how much you can save each month
If you’re looking to save little and often, the top regular saving accounts pay up to 7.5% interest on your money. Regular saving accounts require you to put away money each month.
The interest paid is normally higher than normal saving accounts, but you’re capped at how much you can save each month. Some accounts also limit how many withdrawals you can make, so it is worth reading the terms and conditions carefully.
Principality Building Society is currently offering a market-leading 7.5% interest rate on its regular savings account. This is fixed for six months and is capped at £200 each month.
If you put away £200 every month for the full six months, it means you will have saved £1,226 by the end of this period, including £26 in interest. With this account, you’re not allowed to make withdrawals, but you can skip months and you can close the account early.
If you’re able to save for a longer period of time, there are other accounts where you’ll accrue more interest on your money. Zopa offers a rate of 7.1% and you can save up to £300 a month. However, this rate is variable, so it can change at any time.
But if you were to put away £300 a month for a year, and the rate stayed at 7.1%, you would end up with £3,737 in your account, including £137 in interest.
First Direct offers a rate of 7% on up to £300 a month, and this is fixed for one year, after which you would have saved £3,735, including £135 in interest.
Savers are being urged to act quickly to secure the top rates while they’re still available as the Bank of England base rate is forecast to continue to fall.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “Savers will be disappointed to see variable savings rates fall across the board over the past month, showing how essential it is to find out if their savings pots are working as hard as they should be.
“Loyalty does not pay, so it comes down to savers to proactively review rates and switch their accounts if they are getting a poor return on their hard-earned cash.
She added: “The cuts to the Bank of England Base Rate spell misery for savers, as banks are quick to slash rates in response and cuts can create an apathetic attitude among aspiring savers as a result.
“It is vital that savers look beyond the high street banks and instead take notice of the many challenger banks and mutuals competing in the savings arena.”