What are Regular Savings Accounts and Regular/Monthly Saver Accounts.

These are accounts that you as a saver must usually pay money into monthly.

What are the advantages of regular and monthly savings accounts?

1/ Regular savings accounts normally pay a higher level of interest than an instant access savings account and sometimes more than a fixed rate bond. 2/ By investing in a regular/monthly savings account you will find your savings grow very quickly 3/ Interest rates are normally variable so if interest rates rise so will the savings rate you receive. 4/ Some regular savings accounts do allow you some access to your funds. 5/ They are a good way to save regularly and through the use of direct debit are easy to maintain.

What are the disadvantages of regular and monthly savings accounts?

1/ Often the headline rate of interest includes a bonus at the end of the year and if you miss a payment you lose the savings bonus. 2/ You are limited to the maximum you can pay in each month 3/ The interest rates are normally variable so if interest rates drop so will the interest rate on your regular savings account. 4/ Some regular saver/monthly saver accounts have restrictions on withdrawals.

Are they worth saving in?

I personally like them and provided you understand and read carefully the terms and conditions that apply to the one you choose you can get an above average rate of interest on your savings.

Examples of 3 Regular Savings Accounts

BARCLAYS MONTHLY SAVINGS ACCOUNT Available to new and existing customers, Monthly Savings is a simple way to make regular savings. Just deposit between £20 and £250 a month by standing order for the 12-month term of the account and let Barclays do the rest. Earn a fixed interest rate of 3.25% AER (4.17% gross p.a.*) in months when no withdrawals are made. No withdrawal restrictions but should you need to take some money out, a lower fixed rate of 3.03% AER (2.99% gross p.a.*) is paid in months when you make a withdrawal. Interest is paid monthly. At the end of the 12-month term your account will automatically switch to an instant access savings account that is available at that time. Online applications only available to existing barclays bank customers.

MONMOUTHSHIRE BUILDING SOCIETY FLEXIBLE SAVER AER 4.00% (Rate includes a fixed 2.00% bonus paid on 1st anniversary provided account remains open.) Monthly deposits from £20-£1000  Although the headline rate is not a best buy you can continue this account beyond 12 months and from personal experience they don't appear to tie you in and then crash the interest rates like some others.

HALIFAX REGULAR SAVER AER 2.00% Monthly deposits from £25-£500 over 12 months No withdrawals are permitted during the 12 months. At end of 12 months account will switch to your nominated savings account.