Treat savings like a monthly bill, says savings guru

If you don’t have a lump sum to invest, one of the best ways you can get into the savings habit is to open a regular saver account and deposit the amount you can afford the day after you are paid, so it becomes like another bill – but one that you can benefit from in the future.

Regular savings accounts pay some of the top rates available as you are normally restricted by the amount you can deposit and you may not be able to dip into the cash very often, if at all over a given term.

In fact, there are usually a number of terms and conditions to keep an eye on to make sure you earn the interest you are expecting. 

And some of the top accounts are only accessible if you hold a current account with the provider. But normally you won’t need to transfer your primary current account. 

Regular savings accounts normally offer a fixed rate of interest for a set term, but there are also many variable rate accounts around, so keep your eyes peeled.

The top regular saver rates on offer have been unaffected by the base rate cut and we have even seen a newcomer to the market recently. 

Virgin Money has jumped straight to the top of the table, offering its current account holders’ access to a fixed rate of 10% gross/10.38% AER on deposits of up to £250 a month until maturity on 31 July 2025.

The requirement for a current account is pretty common for the top regular savings accounts, but not all accounts have this requirement.

The Progressive Building Society is paying 7% gross/AER, fixed for 12 months – on deposits of up to £300 a month – and you do not need to have a current account with the provider.

Bottom line is that it’s important to check whether opening a new current account just to have access to the regular saver is a good idea.