Best regular savings accounts paying up to 7% interest
- We round up the best regular savers for interest and other perks
Savers who put aside money each month are often rewarded with interest rates up to 7 per cent.
Regular savings accounts can be a good way to build up a savings pot and get into the habit of tucking money away.
They allow savers to put away smaller amounts, in some cases up to £300 a month but as little as £25, and offer a high headline interest rate.
But they are not usually worthwhile for those with lump sums to save.
This is because the interest you'll earn is about half the interest rate of the account - where money is saved monthly, rather than as a lump sum, the interest accrues on each smaller monthly amount.
If you save £300 each month in the regular saver, in month 1 you'd earn 7 per cent on £300, in month two 7 per cent on £600, and month three 7 per cent on £900 and so on with your balance growing by £300 each month - over 12 months you will earn £136.50 in interest.
If you saved the full £3,600 lump sum in a one year bond paying 7 per cent, you would earn £252 in interest.
Little and often: Regular savers can help savers build a saving habit as they allow savers to put away up to £300 a month and pay high interest
Andrew Hagger, director of personal finance website MoneyComms says: 'Actually making the time and effort to set up a savings account is probably the hardest part for most people, once you get into the savings habit and see your balance grow month on month it can give you the encouragement to keep going.'
Regular savers often come with a number of terms and conditions.
You usually need to already be a customer of the provider offering the regular savings account you want as most are offered only to savers who have their current account with the provider. Though there are some exceptions.
Withdrawals from regular savers are typically restricted, so you need to read the fine print when choosing one.
Here we round up some of the best regular savers for building a savings pot.
First Direct - 7%: Best for high interest
First Direct's regular saver lets you tuck away up to £300 a month and pays 7 per cent interest. The minimum amount you can save in the account is £25 a month.
If the maximum £300 is saved every month, after 12 months, the total amount saved with interest earned would be £3,736.50 - so £136.50 of interest.
Payments are made to First Direct's regular saver by standing order. The standing order payment date will need to remain the same once set up and you can only make one standing order payment each month.
If you want to change the amount of money paid into the account, you need to contact First Direct to set up a new standing order.
You can't make any withdrawals with this account and can only access your money after 12 months. If you need to access your money before then, the account will have to be closed.
You must be a First Drect customer to open this account. It can be opened online or in First Direct's mobile banking app.
Nationwide - 6.5%: Best for multiple withdrawals
This is the best regular saver if you would like some flexibility with withdrawing your money.
Savers with a Nationwide current account can put away up to £200 a month in the account.
You can make up to three withdrawals during the 12-month term. If you make four or more withdrawals, the rate drops to 1.75 per cent for the rest of the term.
If the maximum £200 is saved every month and no withdrawals are made, after 12 months the total amount saved with interest would be £2,484.50 - so £84.5 of interest.
You must have a Nationwide current account to use this regular saver. It can be opened online or in Nationwide's mobile banking. This account is not available to be opened in a branch.
Coventry - 5.5%: Best for other perks
Coventry launched a loyalty regular saver account for members who became members of the the building society snice last year.
The loyalty regular saver pays 5.5 per cent and savers can away up to £250 in the account.
But that's not all. Members who open this account will also be entered into a prize draw with a pot of £50,000 made up of 50 £1,000 prizes. The prize draw takes place on 31 May 2025.
To be eligible to entered into the prize draw, members must open have joined Coventry Building Society before the end of last year and have at least £100 in the loyalty regular saver by 31 May 2025.
The minimum balance is £1 and there's no limit on the number of times savers can put money in over the year, as long as it doesn't exceed £250 a month.
If the maximum £250 is saved every month, after 12 months, the total amount saved with interest earned would be £3,080.89 - so £80.89 of interest.
Aldermore - 5%: Best for unlimited withdrawals
Aldermore's regular saver pays 5 per cent and allows savers to put away a maximum of £300 a month.
Savers can withdraw their money as many times as they like as the account has unlimited withdrawals. The rate will not drop if customers access their money.
If the maximum £300 is saved every month and no withdrawals are made, after 12 months, the total amount saved with interest earned would be £3,697.40 - so £97.40 of interest.
You don't need to be an existing customer to open Aldermore's account. The account can be opened online on Aldermore's website.
Ford Money - 4.75%: Not attached to current account
If you don't want to open a regular saver attached to you bank, this is the best account.
Ford Money's regular saver allows you to put away between £25 and £200 month and pays 4.75 per cent interest.
It does not limit withdrawals so you can access your money as many times as you need. The rate will not drop if you make more than three withdrawals.
If the maximum £200 is saved every month and no withdrawals are made, after 12 months the total amount saved with interest would be £2462.66 - so £62.66 of interest.
The Ford Money regular saver can be opened on Ford Money's website.
How do they compare to Help to Save?
Help to Save is a type of savings account which was launched by the Government in 2018. It helps low-income people who receive certain benefits to build a savings pot by paying a bonus of 50p for every £1 they save over four years.
Unlike regular savings accounts, this account does not pay interest but instead comes with a bonus.
Savers can put away between £1 and £50 each month. They don't have to pay money into the account every month.
It means those tucking away the maximum £50 a month can get a £25 Government top-up, with bonuses paid in the second and fourth years of the account being opened.
Savers who deposit the maximum amount of £2,400 over four years will receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year.
You can only get this account if you are working and claiming Universal Credit, earning at least £1 a month.
If you are eligible for this account, you will be able to save a maximum of £600 a year, where as most regular savers allow you to amass at least £2,400 a year if you can put the maximum in them each month.
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