Regular savings accounts offer the highest interest rates of all the types of savings accounts. But they are also the most restrictive of all the savings accounts.
Regular savings accounts typically require that you make 12 regular deposits a year and that your deposits are above a minimum level and below a maximum level. This is often something like £25-£500 each month. If you make a withdrawal or miss a payment you will often lose some or all of your interest.
But, if you continue to deposit the regular amount each month, you will get a high, fixed, rate of interest for the year.
Regular savings accounts are ideal if you have a limited amount to save each month and you are sure that you won’t need to stop your savings deposits.
Alternatively if you want to maximise the interest you receive you could recycle existing savings through a regular savings account to boost your returns. You could set up a transfer from your bank account into the regular savings account and then move money from your existing savings account into your bank account.
At the end of the 12 months you will have increased the interest earned on some of your savings by the difference between the rate on your existing savings account and the interest rate on the regular savings account. You could repeat this trick with many different
regular savings accounts to really boost your savings interest.
