What is Regular Saver?
A savings account requiring fixed monthly deposits (typically £25-300) for 12 months, offering a higher interest rate than standard savings accounts — often 6-8% AER. The effective return is roughly half the headline rate because your balance builds gradually. Most require you to hold a current account with the same bank.
A regular saver is a savings account built around monthly deposits rather than a lump sum. Typical UK terms allow between £25 and £300 a month for a fixed 12-month term, in exchange for a headline rate well above easy-access accounts — often 6-8% AER. Deposit caps, withdrawal restrictions and what happens to missed months vary by account.
The headline rate needs interpreting. Because money goes in gradually, the average balance across the year is about half the total deposited, so the cash interest is about half what the headline suggests: £200 a month at 7% AER earns roughly £91 over the year, not £168 — the 7% is genuinely paid, but each deposit only earns it for the months it's actually in the account.
Most of the best regular savers are loyalty products, available only to holders of the bank's current account. That links them naturally to bank switching, which leaves a trail of current accounts behind — each one potentially unlocking another high-rate saver. Funding several at once from an easy-access pot is known as drip-feeding, or running a saver ladder.