Nationwide has offered some of the best regular savings account deals, but for many who bagged the 6.5% deal last year, the account will be set to mature over the coming weeks and into the new year.
The building society has launched different versions of the regular savings account since lowering the rate from 8% to 6.5% in February 2024.
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“Regular savings are a great way to put money away each month to help you build your savings habit, but it's important to remember when it matures and switch as the rates you will be left with will be poor. So, be ready to move to either another regular saver or even a cash ISA, where the money in your account and the return you make on it will be tax free,” Kalpana Fitzpatrick, digital editor at MoneyWeek, said.
What are the best regular saver accounts right now?
As it stands, the Nationwide 6.5% regular saver account is still available, so you could jump onto it for another 12 months.
The maximum you can pay into the account each month is £200 a month, and the maximum withdrawals you can make are three - any more and you will only earn 1.05% interest.
Nationwide is popular with savers, in particular because of its Fairer Share Scheme, which has paid eligible members £100 on-off bonus in the last two years.
But, if you are after the top rate and only want to commit to saving a regular amount for a few months, then you can earn a slightly better rate with Principality Building Society at 7.5%.
You can open one of the accounts with a minimum deposit of £1 and stash up to £200 a month into the account, with any interest paid when it matures. There are two major drawbacks to the account though - it only offers 7.5% interest for six months and no withdrawals are allowed. However, the account is still worthwhile for people not keen on tying up their money for a whole year.
But, if you want a year, then you can still beat Nationwide’s deal with Zopa Bank’s regular saver account, which pays 7.1% interest and you can pay in up to £300 in each month. You will have to open a Biscuit current account via the Zopa app to qualify for the regular saver account.
The next best is Co-operative Bank’s 7% regular saver - interest is paid when the account matures after 12 months. Savers can open the account with a minimum deposit of just £1 and add up to £250 per month, up to a maximum of £3,000.
You can withdraw cash at any time, but any withdrawal still counts towards the £250 monthly limit. So, if you added £200 then took out £100 in the same month, you’d only be able to add a further £50.
The account is exclusively for current account customers, whether new or existing.
With Nationwide, you would make £2,486.20 over 12 months, and £2,492.98 with Co-op Bank - a £6.78 difference - so there isn’t much difference if you are unsure about moving your money.
What about moving to a different type of savings account?
If your Nationwide regular saver has matured, you could always opt for a different type of savings account altogether.
The first thing to consider is whether you need access to your cash. If you don’t, a one-year fixed savings account could work well. This guarantees you a set interest rate for the whole year (which could be helpful if savings rates fall elsewhere in the market). But you won’t typically be able to access your money without having to pay a penalty.
We round up the best one-year fixed savings accounts.
If you do want to be able to withdraw money, there are still some decent easy-access savings accounts around, despite a glut of recent base rate cuts.
Note that these savings rates can change at any time, so even if you open a 4.5% account, the rate could fall shortly after. This means you’ll need to be ready to switch to a different account to maintain a competitive return.
In any case, you want to make sure your savings account is paying an interest rate that’s higher than inflation (currently 3.6%), otherwise you’re losing money in real-terms.
The best easy access savings rates on offer at the moment are from Cahoot (4.40%), Chip (4.37%) and Shawbrook Bank (4.34%).
If you’re concerned about paying tax on your interest, maximise your cash ISA. All adults can pay in up to £20,000 across their ISAs each tax year, and the interest is completely tax-free. You can choose an easy-access or fixed-rate cash ISA. Just bear in mind the annual allowance for cash ISAs is falling from April 2027.
Caitlyn Eastell, spokesperson at Moneyfacts, said: “During the Budget it was confirmed that the cash ISA tax-free allowance would drop from £20,000 to £12,000 in 2027, so it is crucial that tax savvy savers maximise their returns before it drops.”
If you like the idea of winning prizes with your money – rather than a regular amount of interest - then you could consider Premium Bonds. Any prizes are tax-free, but note that while some lucky customers will scoop prizes, others won’t win anything at all.
Are there any switching bonuses that could boost my savings?
Yes, there are a few switching bonuses on offer for customers transferring their current account which could tempt you in. You may then qualify for a regular saver with that bank or building society.
For example, Santander recently launched a £200 switching offer while Lloyds is offering a free £200 and you can then sign up for its 6.25% regular saver.
Just make sure you check the small print and understand all the criteria you need to hit to get the switching bonus, as well as how your new current account works.
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