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Regular Savings Accounts

Regular savings accounts are aimed at people keen to save for a special occasion or purchase. They may also appeal to parents looking to build up a nest egg for their children for expenses such as university or a deposit on their own home.

A number of banks and buildings societies offer regular savings accounts. An amount of money has to be paid each month into the account. A certain number of monthly payments have to be made into these accounts each year to prevent loss of interest or closure.

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Regular savings accounts tend to have a minimum and maximum amount that can be deposited into the account each month. There may also be opening restrictions with these savings accounts such as living in the local area or having an existing current account with that provider.

Regular savings accounts often give a higher rate of interest than a normal savings account. however, they usually come with a restriction on the number of withdrawals, which if exceeded can mean a dramatic drop in the rate of interest paid or even that the account has to be closed. These savings accounts may offer interest on a fixed or variable rate basis.

The savings best buys and search on moneyfacts.co.uk will help you choose which account suits you. It is worth reviewing your savings on a regular basis to ensure you are getting a good return for your investment.