Regular Savings Accounts

Regular Savings Accounts require you to save money, usually a set amount, into the account each month.

Most accounts do not allow you to invest a lump sum and Providers usually set down a minimum and maximum deposit limit when you open the account. Access to these accounts may vary from Provider to Provider. Most accounts are instant access, but notice and fixed term accounts are also available.

Advantages

• A fixed amount is transferred into the account each month helping the saver to budget.
• Most accounts are variable interest accounts so if the Bank of England base rate increases - interest paid on the account may increase

Disadvantages

• No lump sum deposits
• There is a maximum and minimum amount which you can deposit each month.
• Some Providers put restrictions on to obtain the higher interest rates i.e. a limited number of withdrawals and a minimum amount of deposits have to be made. If these conditions are not met a lower level of interest may be paid.