A regular savings account lets you pay in a set amount each month rather than a lump sum. Headline rates on these accounts are often higher than on easy-access or fixed-rate savings. But because you build up the balance over the year, the interest you actually earn is lower than the headline rate suggests. This guide explains how they work, what rates looked like when we checked, and the terms to look at before you apply.

About the figures in this article: Market-wide rates are based on rates published on MoneySavingExpert, captured on 22 and 25 September 2026. They reflect providers listed there and may not cover the whole market. Savings rates change often, so check the provider's own page before applying. This article doesn't cover every account available, and other products not mentioned here may better suit some savers.

What is a regular savings account?

A regular savings account (often called a "regular saver") is a savings account you pay into monthly, up to a set maximum. Most have a fixed term, usually 12 months. At the end of the term the money typically moves into the provider's standard savings account, which pays a lower rate.

How do regular savings accounts work?

Regular savings accounts allow you to save into them each month. The amount you can put in can vary between accounts, though the amount is typically capped per month. Interest is usually paid annually.

• Monthly limits: The accounts we checked had minimums from £1 to £25 and maximums from £150 to £500 a month.

• Term: Usually 12 months.

• Fixed or variable: Some rates are fixed for the term and others are variable and can change.

• Missed payments: Some accounts let you skip a month. Others require a minimum payment each month.

• Withdrawals: These range from unlimited, to a set number a year (going over can cut the rate), to none at all. With no withdrawals allowed, you'd have to close the account to get your money early, and you may earn a lower rate.

• Interest payment: Often paid at the end of the term, though some accounts pay monthly.

• Eligibility: Many regular savers are only open to people who already hold the same provider's current account.

Why the headline rate isn't what you earn

Interest is earned only on money that's in the account. You deposit monthly, so your first payment earns interest for 12 months but your last month (of the year) earns interest for about one month. Over 12 months you earn roughly half the headline rate on the total you pay in.

Worked example: If you pay £300 at the start of each month for 12 months into an account paying 7% AER, you'd pay in £3,600 and earn about £136.50 in interest. That's roughly 3.8% of the total you deposited. The figures are illustrative; actual interest depends on when payments land and how the provider calculates it.

Regular saver rates: a snapshot

Based on rates published on MoneySavingExpert as of 22 September 2026:

• Regular savers for existing current account customers paid headline rates of about 5% to 8% AER. Providers listed included Santander, First Direct, Co-operative Bank, Virgin Money, Nationwide, Leeds Building Society, Lloyds, Skipton Building Society, NatWest/RBS, TSB and HSBC.

• Regular savers open to anyone paid headline rates of about 5% to 7% AER. Providers listed included Progressive Building Society, Monmouthshire Building Society and Coventry Building Society.

For comparison, based on rates on MoneySavingExpert as of 25 September 2026, the top easy-access rate listed was 5% AER, limited to balances up to £5,000 and including a bonus. The top fixed rate listed for about one year was 5.06% AER, for 13 months.

These figures reflect providers listed on that site and may not capture the whole market. Interest rates are subject to change; you can learn more in our best savings accounts guide.

Tax and protection

• Tax: Interest counts towards your Personal Savings Allowance: £1,000 a tax year for basic-rate taxpayers, £500 for higher-rate taxpayers and £0 for additional-rate taxpayers. If your other taxable income is below £17,570, you may also get up to £5,000 of interest tax-free under the starting rate for savings.

• Protection: Deposits with UK-authorised banks and building societies are protected by the FSCS up to £120,000 per person, per authorised firm.

Things to check before applying

• Whether the rate is fixed or variable, and what it drops to after the term ends

• The minimum and maximum monthly payment, and whether you can skip months

• The withdrawal rules and any rate penalty for withdrawing

• Whether you need to hold the provider's current account, and for how long