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Best savings accounts for regular savers right now - including market-leading 3.5%

Daily Express logo Daily Express 16/08/2022 Katie Elliott

The raised its base interest rates to 1.75 percent, its fifth increase of the year, at the beginning of August to help tackle the country's soaring rates. One group that largely benefits from this increase is savers, and some accounts are currently offering the best rates recorded in over a decade.

As the UK is forecast to be heading towards a recession by the end of the year, the Bank of England has been increasing its base interest rates to make borrowing more expensive and savings more rewarding.

The intention of this is to curb the soaring inflation rates and bring the cost of living back down to a reasonable level by encouraging more people to save and spend less.

However, as inflation is predicted to peak at 13 percent in October, interest rates are only expected to increase further.

The Bank of England's deputy governor, Dave Ramsden said earlier in the week: "Personally, I do think it's more likely than not that we will have to raise the Bank rate further. But I haven't reached a firm decision on that.

READ MORE: Santander increases interest rates on three bank accounts

RBS, money © GETTY RBS, money UK interest rates © PA/GETTY UK interest rates

"I'm going to look at the indicators, look at the evidence as we approach each upcoming meeting."

For savers, the interest rate reflects how much will be paid into their account, as a percentage of the savings in there.

The higher the interest rate, the more will be paid into your account for a given-sized deposit.

There are a number of different savings accounts to opt into, from ISAs to fixed rates and easy access accounts to name a few.

Regular savings accounts, however, are a great way to start building up a savings pot. They tend to offer the highest interest rates and you pay into these accounts monthly.

All you have to do is meet the requirements on the respective accounts and you'll earn interest on your savings. This is generally on the basis you make minimal withdrawals and deposit regularly.

However, like with all accounts, some offer higher interest rates than others. Money Facts has pulled together the top 10 available right now.

Top 10 regular savings accounts

Ranking top of the list is first direct's Regular Saver account with an Annual Equivalent Rate (AER) of 3.5 percent.

A minimum deposit of £25 is required to open the account and it allows you to save between £25 to £300 each month for a fixed 12-month term.

Interest is calculated daily and rewarded at the end of the 12-month term.

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Natwest © GETTY Natwest

The cost of living crisis is throwing millions of households into financial uncertainty across Britain.

With the energy price cap increase, fuel costs growing and inflation soaring, making those most of your money has never been so important.

Coming in second is NatWest's Digital Regular Saver with an AER of 3.3 percent.

There's no minimum deposit required to open this account and interest is paid monthly.

Ranking third on the list is the Royal Bank of Scotland's Digital Regular Saver with an AER of 3.3 percent.

Like Natwest, interest is paid monthly and there's no minimum deposit required to open, but you can only deposit up to £150 a month to this account.

Fourth on the list is Principality BS's Learner Earner (Issue 3) with an AER of 2.95 percent.

There's a £1 deposit required to open the account and interest is paid annually.

In fifth place is Nationwide BS's Flex Regular Saver with an AER of 2.5 percent.

Like Principality BS, a £1 deposit is required to open the account, and you can make up to four withdrawals without facing a lower interest penalty.

Coming sixth is TSB's Monthly Saver with an AER of 2.5 percent.

A minimum of £25 is required to open the account and interest is rewarded after 12 months, providing there are no withdrawals within that time.

Bath BS's Homestart Regular Saver ranks seventh with an AER of 2.05 percent.

Designed specifically for 18-34 year-olds looking to save for their first home, a minimum deposit of £50 is required to open the account and withdrawals are limited to two a year.

Placing eighth and ninth on the list is Principality BS's NHS Thank You Online Saver and NHS Thank You Saver, both with an AER of two percent.

These accounts are for people directly employed by the NHS. Interest is paid yearly and you're permitted up to three withdrawals yearly.

Last but not least, ranking tenth on the list is West Brom BS's Adult's Fixed Rate Regular Saver (Issue 4) account with an AER of two percent.

A minimum deposit of £10 is required to open the account and no withdrawals can be made during the 12-month term - interest is only applied at the end of this.

For more information on each account, visit Money Facts' website, here.


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