Save a set slice of your monthly income and earn a slightly higher interest rate
Regular Savings or Monthly Savers Accounts generally pay slightly better rates than current bank accounts or Easy Access options.
🙂 An ideal way of getting into the savings habit, by putting away a set amount each month (typically from as little as £10 to around £500).
🙂 A good option for saving up for small purchases e.g. laptop, business clothes, holiday, household appliances.
🙁 There are usually strict rules on how you can operate your account, such as compulsory monthly deposits, restrictions on how much you can put away or take out, and on the duration of the savings account e.g. 12 months.
😥 Generally no instant access to your money (unless you pay a penalty to withdraw), therefore not a good idea for emergency savings. Some providers limit the number of withdrawals you can make.
Interest on Regular Savings Accounts
Some accounts have variable rates, while others offer a fixed return over a set period e.g. 12 months.
Although regular savings can offer a good rate of interest, it is only on a small amount of money. Your savings build up gradually, giving a lower return than a lump sum deposit. So if you have a large amount to put away, you might be better off with an account that allows you to invest bigger sums, even if the interest rate is lower.
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