Financial Services > Investments > Savings Accounts > Regular Savings Accounts

Regular Savings Accounts



Regular savings accounts offer higher rates of interest for those prepared to commit to save regularly, and tolerate relatively inflexible account rules. Rates are generally better than easy access accounts, although access to funds is restricted.

Regular savings accounts provide a good discipline to save, as contributions are generally by standing order, and missed payments can lead to interest rate fines, downgrading to a lower interest account, or even to account closure. So a useful tool for those saving for a specific goal in the future. Like a child's wedding, university fees and so on.

Some accounts are open-ended, some are for a certain term - perhaps three or five years.

Restricted withdrawals

Withdrawals are limited to one or two a year, or in the case of some term accounts, none whatsoever. Again, exceed the permitted number of withdrawals, and you could lose interest or have the account downgraded. Also, there may be restrictions on contribution changes. Some providers allow you to change once a year, some once a year but only upwards, others are more flexible.

 

Low minimum levels

You can put away from as little as £10 a month. Maximum payments can be low - as little as £100 in one case - £500 or £1000 is more standard. Accounts don't as a rule, accept lump sums. Regular savings accounts are available largely from building societies and ex-building societies. Some building societies reserve access for local members only.

When choosing an account, do take into consideration easy access accounts as well. The most competitive of these can pay as well as regular savings products, without hemming users in with rules and limitations.

Investments.co.uk is the definitive guide to making the most of your money. You can also visit us at www.pensions.co.uk to help you plan a financially secure retirement.

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UK Investments - Financial, Property & Other Investments - 1998-2008

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