Regular Savings Accounts - What Is A Regular Savings Account & How Does It Work?

A regular savings account is an account where you agree to pay in to it each month a set amount for normally between 1 and 5 years. Regular savings account usually pay more than instant savings account and also normally give you an interest bonus after a set period of time. Interest rates vary from account to account so it is best to shop around to find the highest paying regular account.

The minimum amount you can save varies from account to account but is typically between £10 and £100 and you must not access the money, although some regular savings accounts allow to make one withdrawal per year. Make sure you make the regular payments and don't make any more withdrawals than you are allowed ( which may be just one a year or none at all) otherwise you may have to pay a penalty such as loss of your interest bonus.