While the Bank of England Base Rate sits at a 15-year high of 4.25 percent, savers are being offered some of the highest interest rates seen in decades. However, rates are fluctuating nearly month-on-month, making it key for people to keep an eye on the market to ensure they’re investing in the top accounts.
Regular savings accounts typically offer higher interest rates and the terms generally encourage savers to pay money into the accounts monthly.
To earn interest, savers just need to meet certain requirements on the respective accounts and this generally involves making minimal withdrawals and depositing regularly.
While there are no savings accounts that beat the UK’s 10.1 percent inflation rate, some are offering notably high returns. Money comparison site Moneyfactscompare.co.uk has pulled together the top 10 available right now.
Top 10 regular savings accounts with high interest rates
Topping the list is NatWest’s Digital Regular Saver with an Annual Equivalent Rate (AER) of 6.17 percent.
The 6.17 percent interest rate is awarded to savings up to £5,000, after which a one percent rate will be applied to savings from £5,001 and over.
There is no minimum deposit required to open the account and it allows people to save up to £150 each month. Unlimited withdrawals are permitted without penalty and interest is awarded monthly.
Placing second is Royal Bank of Scotland’s Digital Regular Saver, also with an AER of 6.17 percent.
Like NatWest, the same interest rules apply (6.17 percent paid up to £5,000, then one percent), interest is applied monthly, and unlimited withdrawals are also permitted.
In third place is Monmouthshire Building Society’s Coronation Regular Saver with an AER of 5.6 percent.
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The account can be opened with just £3 and interest is variable and calculated daily. It’s then paid at the end of the 12-month term. Savers can pay in a maximum of £300 per month, making the maximum balance permitted overall to be £3,600.
Withdrawals can be made without notice or loss of interest by cash, cheque and electronic transfer.
Placing fourth is the Bank of Scotland’s Monthly Saver with an AER of 5.5 percent.
This account is also a 12-month bond and allows savers to deposit £25 to £250 a month. People also must have a Bank of Scotland current account in order to open it.
Unlimited withdrawals are permitted without penalty and after 12 months, the account will change to an Instant Access Savings Account.
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Halifax’s Regular Saver places fifth, also with an AER of 5.5 percent.
A minimum deposit of £25 is required to open the account, and regular savings between £25 and £250 must be deposited every month.
The AER is fixed for 12 months and will be applied to the balance on the anniversary of the account opening. After which, the money will be transferred into an Everyday Saver account. Withdrawals are not permitted, but the account can be closed before the term ends without charge.
Placing sixth is Lloyds Bank’s Monthly Saver with an AER of 5.25 percent.
A minimum deposit of £25 is required to open the account, and regular savings between £25 and £250 must be deposited every month. Savers must have a Lloyds Current Account to open it, and interest is paid after 12 months when the term ends and withdrawals are permitted penalty-free.
Nationwide BS’ Start to Save (Issue 2) comes seventh with an AER of five percent.
Interest is calculated daily and paid yearly on the anniversary of opening, and those who regularly save between £25 and £50 per month will also be entered into a £250 prize draw.
This is an instant-access savings account, which means people can get access to their money whenever they need it. However, those who do withdraw may need to repay all or some of it back in during the same calendar month to be eligible for the prize draw.
In eighth place is TSB’s Monthly Saver Account with an AER of five percent.
Savers can open this account with just £1 and interest is calculated daily and paid at the end of the 12-month term.
A monthly standing order between £25 and £250 must be set up from a TSB current account, and only one payment can be made each month. Withdrawals are permitted instantly without penalties, however, the funds can not be replaced.
Hinckley & Rugby BS’ Regular Saver 30-Day Notice Account places ninth with an AER of 4.75 percent.
A £10 deposit is required to open the account and up to £500 can be deposited monthly. Subject to a 30-day notice period, unlimited withdrawals are also permitted. However, if two payments are missed, the account will revert to Plain Sailing Easy Access Account.
Finally, in tenth place is Saffron Building Society’s Small Saver with an AER of 4.65 percent.
The account can be opened with just £1 and interest is calculated each day and paid at the end of the fixed term. Savers must deposit between £1 and £50 per calendar month and withdrawals can be made once per month.
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