Finding the best savings rates isn’t easy. With interest rates at an all time low, trying to maximise the return on your cash is tough. Many accounts pay an interest rate that doesn’t even keep up with inflation, whilst those with good returns often require you to tie up your savings for a period of two years or longer.
However, there are some good ways to benefit from interest rates in excess of five or six per cent. Regular Saver accounts can offer an excellent return on your money – as long as you adhere to their terms and conditions.
High interest rates
The Daily Telegraph reports that “HSBC… pays 10 per cent on its regular savings account, First Direct pays 8 per cent on its equivalent product, while Santander is offering 6 per cent on its ‘Super Fixed Monthly Saver’.
Whilst these accounts offer excellent rates, bear in mind that you are likely to be restricted as to the amount you can invest. Most Regular Saver accounts only allow you to deposit between £25 and £250 per month and they typically mature after one year.
Check the terms and conditions
If you are thinking of taking advantage of a great rate with a Regular Saver account, there are a couple of things to bear in mind.
Firstly, make sure that you make a payment every month. Many of these accounts will only pay the advertised rate of interest if you make a payment every month and don’t make any withdrawals. If you miss a month you may find that your interest rate reduces dramatically.
Secondly, many of the high rate Regular Saver accounts require you to take out additional products through the provider. For example, some banks will insist that you open a current account with them before they will let you take advantage of their leading Regular Saver rate.
