Best regular savings accounts with high interest right now (Image: Getty)
While the Bank of England Base Rate rests at a staggering 4.5 percent, savers are being offered some of the highest interest rates seen in decades.
But with rates fluctuating nearly month-on-month, Britons are urged to keep watch of the market to ensure they’re investing in the top accounts.
Commenting on the market, Lucinda O’Brien, personal finance expert at Money.co.uk Savings, said: “In April 2022, the Bank of England’s Base Rate was 0.75 percent, with an average interest rate for savings accounts at 2.72 percent and average instant access rates at 1.35 percent.”
Fast forward to the start of May, Ms O’Brien continued: “The Bank of England upped the base rate to 4.5 percent and the average interest rate for a savings account was 3.31 percent, with the average for an instant access at 2.42 percent.
“This clearly shows that rates have increased – although maybe not as high as we would like to see – so there is no reason to leave your hard-earned money in a low-interest savings account.
READ MORE: Britons urged ‘move your money’ as banks offer over 4% on savings
Some regular savings accounts are paying interest rates as high as seven percent. (Image: Getty)
“Plus, if you do your research, you can easily beat the average interest rates and find accounts offering rates that are considerably higher than last year.”
Regular savings accounts typically offer some of the highest returns and the terms encourage savers to pay money into the accounts monthly.
To earn interest, savers have to meet certain requirements on the respective accounts, which generally involve making minimal withdrawals and depositing regularly.
While there are no savings accounts that beat the UK’s 8.7 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 first direct’s Regular Saver offering an Annual Equivalent Rate (AER) of seven percent on up to £3,600 per year.
The Bank of England Base Rate increased to 4.5 percent in May (Image: EXPRESS)
Interest is calculated daily and paid on maturity of the account exactly one year after opening. Savers can deposit between £25 and £300 per month in multiples of £5.
Withdrawals are not permitted throughout the duration of the 12-month term. In the event of this, the account will have to close and interest will be paid up to the closure date at the Savings Account variable rate instead.
Lloyds Bank’s Club Lloyds Monthly Saver places second with an AER of 6.25 percent.
Available to Club Lloyds customers, a £25 deposit is required to open this account and the term runs for 12 months.
The interest rate is fixed and will be paid on the anniversary of the account opening, and deposits between £25 and £400 must be invested before the 25th of every month. Unlimited withdrawals are permitted without penalty.
Third on 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 people can save up to £150 each month. Unlimited withdrawals are permitted without penalty and interest is awarded monthly.
Placing fourth 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 fifth place 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.
Halifax’s Regular Saver places sixth, 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. Withdrawals are not permitted, but the account can be closed before the term ends without charge.
In seventh place is Lloyds Bank’s Monthly Saver with an AER of 5.25 percent.
Available to Lloyds Current Account holders, a minimum deposit of £25 is required to open the account, and regular savings between £25 and £250 must be deposited every month. Interest is paid after 12 months when the term ends and withdrawals are permitted penalty-free.
HSBC’s Regular Saver places eighth with an AER of five percent.
The account can be opened with a minimum deposit of £25 and up to £250 can be invested every month. Interest is calculated daily and credited at the end of the 12-month term, and partial withdrawals are not permitted.
TSB’s Monthly Saver Account takes tenth place on the list with an AER of five percent (Image: Getty)
In ninth place is Melton Building Society’s Regular Saver Three with an AER of five percent.
The account can be opened with a minimum deposit of £10 and up to £200 can be invested every month. Interest is calculated daily and added to the account annually on May 31. Withdrawals can also be made at any time, penalty-free.
Finally, placing tenth on the list 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.
