Top Regular Savings Accounts: Earn Up to 5% Interest on Your Savings

If you are looking to make your money grow month by month while getting a decent return on interest you should consider opening a Regular Savings Account. You can get an exclusive access to high interest rates with monthly savings accounts. With some accounts you can earn an impressive 5% AER/gross interest (fixed or variable) on your savings. Below we have listed the top Regular Saver Accounts currently available on the market. Additionally, If you want to know more about how Regular Saver Accounts works read our guide on Different Types of Savings Accounts.

Most regular savers account comes with strict terms and conditions. You generally need to hold a specific current account with the bank you are opening a regular saver account with. If you don’t already hold an eligible current account, you can generally open or switch to the same bank so you have an eligible current account to open a regular savers account.

1. First Direct Regular Saver

If you already hold a First Direct 1st Account, you are eligible to get its regular saver account. You can deposit between £25 to £300 each month, for a fixed 12 month term. First Direct will give you a fixed rate of 5% AER (gross 5% pa).

Account Features

  • You can deposit between £25 and £300 each month, up to £3,600 per year.
  • The minimum monthly deposit is £25 per month and the maximum monthly deposit is £300.
  • If you don’t deposit’s the monthly maximum £300 in any month, you can carry over the unused allowance to the following months.
  • 5% AER (gross 5% pa) fixed for 12 months.
  • Interest is calculated daily and paid 12 months after you opened the account.
  • You must make deposits by standing order from your First Direct bank account.
  • You can’t make any withdrawals or miss a payment. If you miss a payment or make a withdrawal First Direct will close your account, they will only pay you the standard Savings Account variable rate.
  • You would earn £96.77 interest (gross) if you saved the maximum £300 for 12 months with this account.
  • You can open an account via online banking or telephone banking.
  • There is a 14 day change of mind (You can cancel the account within 14 days of opening).

Account Overview:

Interest Rate: 5% AER fixed for 12 months. Min Deposit: £25/mth. Max Deposit: £300/mth. Manage Account: Online & Telephone Banking. Missed Payments Allowed: No. Withdrawals Allowed: No.

2. M&S Bank Monthly Saver

If you’ve switched to M&S Bank’s current account, you can get access to its regular saver paying 5% AER fixed for a year. This account’s comes with amazing perks, if you have switched to M&S Bank using the Current Account Switch Service and have 2 active Direct Debits on the account you get a £125 M&S gift card for switching, plus a £100 0% overdraft. Its ideal if you occasionally go into overdraft.

Account Features

  • You can deposit between £25 and £250 each month.
  • The minimum monthly deposit is £25 per month and the maximum monthly deposit is £250.
  • If you don’t deposit the monthly maximum £250 in any month, you can carry over the unused allowance to the following months.
  • 5% AER (gross 5% pa) fixed for 12 months.
  • You’d earn £80.64 interest (gross) if you saved the max for 12 months with this account.
  • Interest is calculated daily and paid 12 months after you opened the account.
  • You must make deposits by standing order from your M&S current account.
  • Deposits must be made on the 1st of each month.
  • You can’t make any withdrawals or miss a payment. If you miss a payment or make a withdrawal M&S Bank will close your account. You will lose the Monthly Saver interest rate instead you will get preferential Everyday Savings Account variable rate.
  • You must have two active direct debits on your current account, and must have switched to M&S Bank using M&S’s current account switching service.
  • There is a 14 day change of mind (You can cancel the account within 14 days of opening).

Account Overview:

Interest Rate: 5% AER fixed for 12 months. Min Deposit: £25/mth. Max Deposit: £250/mth. Manage Account: Online, Telephone Banking & Branch. Missed Payments Allowed: No. Withdrawals Allowed: No.

3. Santander Regular Saver

If you hold a Santander 123 current accounts, 123 Credit Card or the 123 Mini Account (in Trust) you will be eligible to open Regular eSaver (Issue 6), which pays 5% AER fixed for a year on balances up to £200/mth.

Account Features

  • You can deposit between £1 and £200 each month.
  • There is no minimum monthly deposit required and the maximum monthly deposit is £200.
  • You can miss monthly payments, but you can’t carry over the unused allowance to the following months.
  • 5% AER (gross 5% pa) fixed for 12 months.
  • You’d earn £64.33 interest (gross) with Regular eSaver for 1|2|3 World or Santander Select customers or £38.60 interest (gross) with Regular eSaver if saved the maximum £200 for 12 months with this account.
  • Interest is calculated daily and paid 12 months after you opened the account.
  • You must make deposits by standing order directly from your Santander current account.
  • You can make unlimited withdrawals from the account by transfering the money into your Santander current account.
  • You can open an account via online banking or in the branch.
  • There is a 14 day change of mind (You can cancel the account within 14 days of opening).

Account Overview

Interest Rate: 5% AER variable for 12 months. Min Deposit: £0/mth. Max Deposit: £200/mth. Manage Account: Online Banking & Branch. Missed Payments Allowed: Yes. Withdrawal Allowed: Yes.

4. HSBC Regular Saver

To open a HSBC Regular Saver you must have one of these HSBC current accounts: Bank Account, Bank Account Pay Monthly, Graduate Bank Account, HSBC Premier or HSBC Advance. HSBC will give you a fixed rate of either 3% or 5% AER (gross 5% pa) depending on the current account you hold. If you hold a Bank Account, Bank Account Pay Monthly or Graduate Bank Account you can get 3% AER/gross. HSBC Advance Account or Premier Account customer get 5% AER/gross.

Account Features

  • You can deposit between £25 and £250 each month.
  • The minimum monthly deposit is £25 and the maximum monthly deposit is £250.
  • If you don’t deposit’s the monthly maximum £250 in any month, you can carry over the unused allowance to the following months.
  • Either 3% or 5% AER (gross 5% pa) fixed for 12 months depending on the current account you hold.
  • HSBC Premier customer would earn approximately £81.58 interest (gross) with 5% AER if you saved the maximum £250 for 12 months with this account.
  • With 3% AER you would earn approximately £48.90 interest (gross) if you saved the maximum £250 for 12 months with this account.
  • Interest is calculated daily and paid 12 months after you opened the account.
  • You must make deposits by standing order directly from your HSBC Current Account.
  • You can open an account via online banking or in the branch.
  • You can’t make any withdrawals or miss a payment. If you miss a payment or make a withdrawal HSBC will close your account and you will receive interest at their Flexible Saver rate.
  • There is a 14 day change of mind (You can cancel the account within 14 days of opening).

Account Overview

Interest Rate: 3-5% AER Fixed for 12 months. Min Deposit: £0/mth. Max Deposit: £250/mth. Manage Account: Online, Telephone Banking & Branch. Missed Payments Allowed: No. Withdrawals Allowed: No.

5. Notable Mention: Club Lloyds Monthly Saver

Customers can pay in £25 to £400 a month. Payments cannot be made up the following month. Must have a Club Lloyds account. You can deposit between £1 and £400 each month.

Account Features

  • The minimum monthly deposit is £25 and the maximum monthly deposit is £400.
  • 2.50% AER (gross 2.50% pa) variable for 12 months.
  • Your interest is paid annually on the anniversary of the account opening.
  • Only available to existing Club Lloyds current account customers.
  • You must make deposits by standing order directly from your Lloyds current account (this must reach your account by the 25th of the month).
  • You can make unlimited withdrawals from the account. However, you can’t replace any money you withdraw.
  • You can open and manage the account via online banking, telephone banking, mobile banking or in the branch.
  • There is a 14 day change of mind (You can cancel the account within 14 days of opening).

Account Overview

Interest Rate: 2.50% AER variable for 12 months. Min Deposit: £25/mth. Max Deposit: £400/mth. Manage Account: Online, Telephone Banking & Branch. Missed Payments Allowed: No. Withdraw Allowed: Yes.

6. Additional Information

Interest rate definitions explained: AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Gross p.a. is the interest rate without tax. deducted.

The treatment of your account for tax purposes will depend on your individual circumstances and you may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please visit HM Revenue & Customs’ (HMRC) website hmrc.gov.uk (This link will open in a new window). The tax information provided is based on our understanding of current law and HMRC practice, both of which may change.

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