Our Pick Of The Best Regular Saver Accounts May 2024

Bethany Garner
Editor

Published: Apr 5, 2024, 3:10pm

Laura Howard
Editor

Reviewed By

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Regular saver accounts offer some of the best returns on the market. But, on the flipside, they come with stringent restrictions. Most of the top deals, for example, are only available to current account customers of the bank. The amount you can save into these accounts each month is capped, while withdrawal restrictions can also apply.

However, with inflation-busting returns of up to 7%, regular savers are definitely worth a look. They can be particularly useful for achieving a savings goal or kicking off a healthy savings habit.

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What are the best regular saver accounts?

But what are the best deals out there? We’ve pulled together the five top regular saver accounts below.

Note that most of these accounts require you to have a current account with the provider.  If you are prepared to switch, you can find out more with our Best Current Accounts and Best Switching Offers.

For more detail on how we ranked the providers, refer to our methodology.

Keep in mind that savings rates can change frequently. Always check for the best deal again when you’re ready to apply.

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first direct Regular Saver Account

first direct Regular Saver Account
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Interest rate (AER)

7.00%

Minimum/maximum monthly deposit

£25 – £300

Current account required?

Yes

first direct Regular Saver Account

Interest rate (AER)

7.00%

Minimum/maximum monthly deposit

£25 – £300

Current account required?

Yes

Why We Picked It

First direct is paying a market competitive 7.00% AER on its Regular Saver account. This rate is fixed for 12 months.

The minimum opening balance is £25, and savers must deposit between £25 and £300 each month. If the full £300 isn’t deposited one month, the remaining allowance can be carried over to subsequent months, so long as no more than £3,600 is deposited during the account’s 12 month term.

Since interest on the account is calculated daily, paying in the full £300 each month, rather than maxing out your deposits later in the term, will maximise returns.

The account does not allow parietal withdrawals, but it can be closed early. When this happens, the full balance is repaid plus any interest you’d have earned so far at first direct’s Savings Account variable rate (2.00% AER at time of writing).

This regular saver is only available to first direct current account customers.

Pros & Cons
  • Competitive AER
  • Save up to £300 per month
  • Carry forward unused subscriptions
  • Partial withdrawals not permitted
  • Must hold a first direct current account to qualify
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Co-operative Bank Regular Saver

Co-operative Bank Regular Saver
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Interest rate (AER)

7.00%

Minimum/maximum monthly deposit

£1 – £250

Current account required?

Yes

Co-operative Bank Regular Saver

Interest rate (AER)

7.00%

Minimum/maximum monthly deposit

£1 – £250

Current account required?

Yes

Why We Picked It

The Co-operative Bank pays a very competitive 7.00% AER on its Regular Saver account. There’s no minimum opening deposit, and savers can pay in up to £250 each month for a year.

There’s no obligation to make a payment every month, but unused subscriptions cannot be carried over into subsequent months.

Unlike with some regular saver accounts, customers can make withdrawals any time without notice or penalty.

To qualify, you’ll need to hold a Co-operative Bank current account.

Interest on the account is calculated daily, and paid at the end of its 12-month term.

Pros & Cons
  • Competitive AER
  • Open from £1
  • Withdrawals permitted
  • Must have Co-operative Bank account to qualify
  • Unused subscriptions cannot be carried forward
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Nationwide Flex Regular Saver

Nationwide Flex Regular Saver
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Interest rate (AER)

6.50%

Minimum/maximum monthly deposit

£0 – £200

Current account required?

Yes

Nationwide Flex Regular Saver

Interest rate (AER)

6.50%

Minimum/maximum monthly deposit

£0 – £200

Current account required?

Yes

Why We Picked It

Nationwide’s Flex Regular Saver account pays a market-leading 6.50% AER (fixed for 12 months) when you deposit up to £200 per month.

Although you can skip monthly payments, you won’t be able to carry the unused subscriptions forward into subsequent months.

Unlike some regular savers, the account allows three penalty-free withdrawals throughout the 12 month term. From the fourth withdrawal, however, the interest rate drops to 2.15% AER for the remainder of the term.

Interest on the account is calculated daily, and paid at the end of the 12 month term.

To be eligible, you must hold a Nationwide current account, but since the bank is currently offering £200 to switch, it could be worth opening one.

Pros & Cons
  • Leading AER
  • Make up to 3 withdrawals per year
  • Option to skip monthly payments
  • Must have a Nationwide current account to qualify
  • Low monthly deposit limit
  • Interest rate drops from fourth withdrawal
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Lloyds Bank Club Lloyds Monthly Saver

Lloyds Bank Club Lloyds Monthly Saver
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Interest rate (AER)

6.25%

Minimum/maximum monthly deposit

£25 – £400

Current account required?

Yes

Lloyds Bank Club Lloyds Monthly Saver

Interest rate (AER)

6.25%

Minimum/maximum monthly deposit

£25 – £400

Current account required?

Yes

Why We Picked It

The Club Lloyds Regular Saver account pays a competitive 6.25% AER (fixed for 12 months) when you pay in between £25 and £400 each month.

While savers must set up a standing order to open the account, they can make extra deposits via bank transfer so long as they don’t exceed the £400 monthly limit.

Unusually for a regular saver account, unlimited withdrawals are permitted without notice or penalty throughout the term.

Interest on the account is calculated daily and paid when it matures after 12 months.

Pros & Cons
  • Competitive AER
  • Save up to £400 per month
  • Unlimited withdrawals permitted
  • Unused subscriptions cannot be carried forward
  • Must be a Lloyds customer to qualify
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NatWest Digital Regular Saver

NatWest Digital Regular Saver
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Interest rate (AER)

6.17%

Minimum/maximum monthly deposit

£1 – £150

Current account required?

Yes

NatWest Digital Regular Saver

Interest rate (AER)

6.17%

Minimum/maximum monthly deposit

£1 – £150

Current account required?

Yes

Why We Picked It

NatWest pays a competitive 6.17% AER (fixed) on its Digital Regular Saver. There’s no minimum opening deposit, but savers must pay in between £1 and £150 every month.

NatWest customers can also set up ‘Round Ups’, which don’t count towards the monthly limit. Whenever savers spend through a NatWest current account, they can opt for transactions to be rounded to the nearest £1, and have the spare change deposited straight into the Digital Regular Saver.

Savers can make withdrawals whenever they like without penalty, and there’s no minimum or maximum operating balance. However, only the first £85,000 saved will be covered by the Financial Services Compensation Scheme.

It’s worth noting that the interest rate drops should the balance exceed £5,000. Any money above this limit earns a reduced rate of 1.75% (variable).

Interest on the account is calculated daily and paid monthly. It’s only available to NatWest current account holders. Since the bank is currently offering £200 to switch accounts, it could be worth opening.

Pros & Cons
  • Competitive AER
  • Open from £1
  • Top up account with NatWest ‘Round Ups’
  • Withdrawals permitted
  • Must be a NatWest customer to apply
  • Interest rate drops above £5,000

What’s our methodology?

We’ve rated these regular saver accounts based on gross AER (annual Equivalent Rate). We have also considered their minimum and maximum monthly deposits, and withdrawal policies.

We used independent website Savings Champion for the best deals, which we’ve cross referenced with other providers.

Most of the top deals require you have a bank account with the provider.

While account details are correct at the date of publication, rates can change frequently.

What is a regular saver account?

Sometimes referred to as ‘monthly savers’, regular savings accounts reward the ‘little and often’ approach to putting aside cash, by paying high rates of interest compared to more flexible savings accounts.

To operate a regular saver – and get the advertised rate of interest – you’ll need to make a cash deposit every month. The amount varies between providers, but typically it’s between £10 and £500. The interest rate stays the same for the duration of the term.

Which savers do they suit?

If you’re saving towards a specific goal — such as moving home, going on holiday, or making a large purchase — a regular saver account could be an ideal option.

Equally, if you have a lump sum saved in an easy access account, you may wish to ‘drip feed’ it into a regular saver to earn a higher rate of interest.

A regular saver is also great for those looking to make their first foray into the savings habit.

What should I look for in a regular saver account?

When selecting a regular saver account, there are few factors to consider:

  • Minimum and maximum deposits

The minimum and maximum amount you can save each month varies between accounts, so it’s important to check this range works for your particular saving goals.

You should also check whether the account allows you to change the value of your deposit from month to month, roll over unused subscriptions, or skip payments.

  • Length of time you can save

Many regular saver accounts limit the amount of time during which you can save – often to 12 months. During this time the interest is fixed. Other regular savers do not impose a set savings term, but the interest tends to be variable, which means it can go up or down according to the wider market.

While fixed term accounts offer a predictable interest rate,  you usually won’t be able to access your cash before the end of the term without closing the account entirely, which means missing out on the interest you signed up for.

  • Withdrawal policy

Some regular savers allow you to make unlimited withdrawals — whenever you like — without incurring a penalty.

Others don’t allow partial withdrawals, which means you’ll need to wait until the account matures to access your cash and interest, or close the account altogether. If you close one of these accounts early, you’ll miss out on interest.

Which option is right for you depends on whether you need ready access to your cash.

Frequently Asked Questions (FAQs)

How is interest paid?

Interest on a regular saver account is usually calculated daily, and added to your balance either monthly or annually.

What’s the minimum deposit?

Minimum deposits vary depending on the provider you choose. Some accounts can be opened from £1 per month, while others require you to pay in £25 or more.

How much can I deposit each month?

When you open a regular saver account, there’s a limit on how much you’re allowed to deposit each month. This varies between providers, with some capping monthly deposits at £150 and others at up to £400.

How do I open and manage a regular saver account?

Depending on the provider, you can open a regular saver account online, in person, over the phone, via post, or through a mobile banking app.

You may be unable to open the regular saver unless you already hold a current account with the provider.

Your provider will ask for some personal details, and walk you through the process of setting up a standing order that will fund the account.

Once it’s set up, there’s no need to do anything else — your standing order will be paid automatically each month. Some providers also allow you to ‘top up’ the account with additional deposits, or make partial withdrawals.

If the account has a fixed term, you’ll receive the full balance plus interest when it matures. You can also close a fixed term account early by contacting your provider, but by doing so you’ll likely lose out on interest.

Can I withdraw my cash?

Yes, you can access cash held in a regular saver account at any time – but you may pay a price for it.

While some accounts allow partial withdrawals, others require the account is closed altogether if you want to access your cash before it matures.

If you close a fixed term account early, you’ll miss out on the headline interest rate and may earn no interest on your savings at all.

Is money in a regular saver account safe?

Under the Financial Services Compensation Scheme (FSC), any cash deposited with an FCA regulated institution is protected up to the value of £85,000 per individual per institution.

This means you can claim up to £85,000 if the bank goes bust — or up to £170,000 for joint accounts.

Is savings interest taxed?

Technically, savings interest is taxed. But basic rate taxpayers can earn up to £1,000 in interest each year without having to pay tax, while higher rate taxpayers can earn up to £500. This limit is known as your Personal Savings Allowance (PSA).

Additional rate taxpayers do not receive a PSA.

Each individual can also pay up to £20,000 into an ISA (Individual Savings Account) each year, without paying any tax on the interest earned.

What other kinds of savings account could I consider?

There are several different types of savings accounts to choose from, and when selecting one, savers should consider whether they need instant access to their cash, and how much they can put away.

Easy access accounts

As the name suggests, easy access accounts allow savers to add or withdraw cash at any time without penalty. While they don’t pay top rates of interest, they do offer flexibility.

However, some easy access accounts come with certain restrictions, such as a maximum number of withdrawals per year, or a minimum cash withdrawal amount.

Returns on easy access accounts are variable, which means they generally go up or down in line with changes to the bank rate.

Fixed rate bonds

Sometimes known as ‘fixed rate’ or ‘fixed term’ deposit or savings accounts, fixed rate bonds tend to offer high interest rates in exchange for locking away your cash for a fixed period of time.

They generally allow for larger deposits than other types of savings account, but you’ll need to pay in cash as a lump sum, which can’t be added to or withdrawn until the end of the term — usually one to five years. However, terms can be as short of six months and as long as seven years.

Notice savings accounts

Notice accounts don’t allow savers to instantly access their funds. Instead, the bank or building society must be given advance notice whenever a withdrawal is made.

Notice periods are typically 30, 60 or 90 days. Interest rates on these accounts tend to be higher than those offered by easy access accounts, but they don’t allow quick access to your savings.

Cash ISAs

Each adult in the UK can save up to £20,000 in an ISA every tax year without paying tax on any interest generated.

In the past, this meant that a cash ISA was the ideal place to start saving. But since the introduction of the Personal Savings Allowance in 2016, individuals have been able to earn a set amount of interest on savings without paying any tax.

That said, ISAs can still be a tax-efficient option for people with high levels of savings. Cash ISAs can be easy access, notice or fixed.

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Bethany Garner Editor

I’ve been writing for a broad array of online publications for four years, always aiming to make important insights accessible. It’s my goal to ensure that as many people as possible can make informed decisions about their money, and get the most out of their finances with the least amount of stress.