⚡ Editor's Verdict - Top Rate: First Direct 7.00% AER First Direct Regular Saver pays 7.00% AER - the best regular savings rate in the UK for existing First Direct customers. Nationwide Flex Regular Saver pays 6.50%. Regular savers reward consistent monthly saving with market-beating rates.
Regular savings accounts pay higher interest rates than standard savings accounts in exchange for monthly deposits - typically £25 - £500/month. They are ideal for building a savings habit and earning above-market rates on new money saved each month.
Best Regular Savings Accounts UK April 2026
Provider
AER
Monthly Deposit
Linked Account Required
Term
🏆 First Direct
7.00%
£25 - £300/month
✅ First Direct current account
12 months
Nationwide
6.50%
£1 - £200/month
✅ Nationwide FlexAccount
12 months
Lloyds Bank
6.25%
£25 - £400/month
✅ Lloyds current account
12 months
HSBC
5.00%
£25 - £250/month
✅ HSBC current account
12 months
Santander
5.00%
£1 - £200/month
✅ Santander current account
12 months
Virgin Money
5.50%
£1 - £250/month
✅ Virgin Money account
12 months
⚠️ Most regular savings accounts require you to hold a linked current account with the same bank. If you switch current accounts to access a better regular saver, factor in the current account benefits and any switching bonus.
How Regular Savings Accounts Work
Regular savings accounts pay interest on the average monthly balance, not the full deposit amount. Because you add money monthly, the average balance is roughly half your total annual deposit. Example: paying in £300/month for 12 months at 7.00% AER:
Calculation
Amount
Total deposited in 12 months
£3,600
Average balance (roughly half)
~£1,800
Interest earned at 7.00%
~£126
Effective return on total deposited
~3.5% on £3,600
Regular Savings vs Instant Access Savings
Regular Saver
Easy Access Savings
Best rate available
7.00% AER (First Direct)
5.00% AER
Monthly deposit limit
£25 - £500/month typically
No limit
Withdrawals
Usually restricted or not allowed
✅ Any time
Term
Usually 12 months
No fixed term
Best for
Building savings habit, high rate on new money
Existing lump sums, emergency fund
What is the best regular savings account rate in the UK?
First Direct pays 7.00% AER on its Regular Saver for existing current account customers - the highest available rate. Nationwide pays 6.50% AER. Both require a linked current account.
How much can I save in a regular savings account?
Most regular savings accounts limit monthly deposits to £25 - £500/month. First Direct allows £25 - £300/month; Nationwide £1 - £200/month. These accounts reward consistent monthly saving, not lump sum deposits.
Do I need a current account to open a regular saver?
Most high-rate regular savings accounts require a linked current account with the same bank. First Direct requires a First Direct current account; Nationwide requires a FlexAccount.
Is a regular savings account better than a Cash ISA?
For new money being saved monthly, regular savers often pay higher rates (up to 7.00% vs 4.75% for Cash ISA). However, interest from regular savers is taxable (above your Personal Savings Allowance), while Cash ISA interest is always tax-free. Higher-rate taxpayers should compare carefully.
Sources: First Direct Regular Saver · Nationwide Flex Regular Saver · Moneyfacts regular savings rates April 2026 · MoneySavingExpert top savings accounts
Rates listed by UK trackers on 23 September 2026 include Santander Regular Saver at 8.00% AER variable on up to £200 a month, First Direct Regular Saver at 7.00% fixed on up to £300 a month for 1st Account holders, and Co-operative Bank Regular Saver at 7.00% variable on £250. Nationwide Flex Regular Saver and Virgin Money Regular Saver Exclusive both sit at 6.50%, the former variable on £200 and the latter fixed on £250. Regular-saver rates change without notice, so the provider's own page should be checked before opening an account.
Headline rates overstate returns because deposits arrive monthly, leaving an average balance of roughly half the total saved. A 7% account fed with £300 a month earns about £136 over the year rather than 7% of £3,600. Top rates are usually restricted to existing current-account customers. FSCS protection covers eligible deposits up to £120,000 per person per banking licence, and interest counts towards the Personal Savings Allowance of £1,000 for basic rate and £500 for higher rate taxpayers.
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The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Lead editor of Kael Tripton. LBS MBA (Sloan Fellow), AI/ML postgraduate (IIIT Bangalore). 22 years in marketing and commercial roles across 23 markets. Covers UK money, tax and visas.
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