Glossary · UK
What is Regular Savings Account?
A savings account that pays a higher interest rate in return for you paying in a fixed amount each month for a set term.
Full Definition
A regular savings account is a type of UK savings product designed to encourage steady monthly saving. In exchange for committing to deposit a set sum each month, often with a monthly minimum and maximum, the provider typically offers a higher headline interest rate than an easy-access account. The account usually runs for a fixed term, commonly 12 months, after which the balance and interest may move to a lower-paying account. Restrictions are common: limited or no withdrawals, penalties for missed payments, and a cap on how much you can pay in. Because you build the balance gradually, the effective return on your total contributions is lower than the headline rate suggests, since early deposits earn interest for the full term but later ones do not. Interest may be taxable depending on your Personal Savings Allowance. Regular savers suit people building a habit or saving towards a specific short-term goal. Consider whether an ISA offers a more tax-efficient alternative.