The Bank of England has been raising its base rate in a bid to stop soaring inflation and encourage people to save. Sitting at three percent, the base rate rise has been reflected in a number of savings accounts across the market.
Britons are urged to shop around to find the best deal available to them.
There are a number of different savings accounts suitable for differing circumstances and offering a range of perks.
With a regular savings account, people commit to paying in a certain amount each month.
In return, the bank or building society gives someone a higher interest rate than they would get with their current account or ordinary savings account.
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Rules vary between accounts. Some allow individuals to take money out but might give them a lower interest rate for that month or for the remainder of the term.
Other accounts don’t allow any early withdrawals.
It’s important to check the rules carefully before choosing a regular savings account, if people think they might need to access their money during the term.
Money comparison site Moneyfacts has pulled together the top regular savings accounts available right now.
Interest paid on balances over £1,000 will drop to one percent, and interest paid on balances over £5,000 will pay 0.5 percent rate.
There is no minimum deposit required to open the account and it allows people to save up to £150 each month.
Unlimited withdrawals are also permitted without penalty and interest is awarded monthly.
Lastly, the Royal Bank of Scotland’s Digital Regular Saver also offers 5.12 percent.
Like NatWest, the same interest rules apply to this bank account (5.12 percent paid up to £1,000, then one percent and 0.5 percent), interest is applied monthly, and unlimited withdrawals are also permitted.
The maximum monthly deposit is £150.