Archive: MoneySavingExpert's Money Tips Email

• Top-paying regular saver - earn 2.75%. They're linked to bank accounts, but pay only a tiny amount more than the top open-to-all regular saver at 2.7%. What counts is which you can open and how much you can put in:
  
  - Bank with First Direct, HSBC or M&S Bank? If so you can earn 2.75% fixed for a year. While you can vary what you put in, you must deposit at least the minimum. First Direct allows £25-£300/mth, HSBC £25-£250 & M&S Bank (only if you've switched to it) £25-£250. If you need access to your cash you'll need to close the account early, which leads to a big interest penalty. 
  
  - How to open a 2.75% account. See Best Bank Accounts if you want to switch current account (some pay you to do that). Once you're a customer (or if you already are), the easiest way is to just open the regular saver via online banking.
  
  
• Top open-to-all regular savers - earn 2.7%. Here, both accounts have no minimum, so you can miss monthly payments without penalty.
  
  - Principality BS pays 2.7% AER fixed for a year and lets you put in up to £125/mth. If you need access to your cash you'll need to close the account and take it all out.
  
  - Coventry BS pays 2.5% AER variable and lets you save up to a big £500/mth. You can withdraw cash at will, but you lose 30 days' interest.
  
  
• Combine the accounts to save more. If you're lucky enough to have lots of spare cash each month, there's nothing stopping you combining these accounts. Someone with a First Direct bank account who opens a Principality and Coventry saver could put £925/mth away - all at a minimum 2.5%.
   
  
• Beware - after a year the money is moved to a rubbish instant-access saver. Diarise when it ends and move it to a better payer. Then reopen a new version of your regular saver(s) - provided they're still around - and start again.
  
  
• Don't believe the 'they only pay half of what they promise' naysayers. If you put money in a regular saver, they pay the interest stated. But at the end of the year you may get less than you think.
  
  Here's why. Imagine you save £200/mth. At the year-end you'd have £2,400. In a 2.7% interest account, many expect to see £65 interest added (2.7% of £2,400). Yet you'd actually have £35. That's because you wouldn't have £2,400 in there for the full year, as your average balance would be £1,200.
  
  So if you compare it to saving a lump sum over a year, the interest looks less. But these accounts aren't for lump sums, they're for regular saving (hence the name), and if that's what you're doing then these pay nearly double the top easy-access rate on monthly sums.
  
  
• On a low income? Regular savings with a 50% boost. If you're claiming tax credits or universal credit, you may qualify for a state-backed regular saver which gives a 50% bonus on what you save. Check if you can get it in Help to Save.
  
  

There are some strict rules with regular savings accounts, so if they're not for you, or if you've a lump sum, here's what you should be thinking of:

• 1.45% easy access - good if you need to dip in. Here you can withdraw at will, though rates are variable and can move, so keep an eye out. Top payer is Marcus* - UK arm of US giant Goldman Sachs - at 1.45% AER variable (incl a 0.1% 1yr bonus). Full options in top easy-access savings.
  
  
• 1.8% fixed for a year. If you know you won't need access and are happy to lock cash away, fixes pay more, but you won't benefit from any rate rises in the meantime. Metro Bank offers the top 1yr fix at 1.8% AER (min £500). More info plus two, three and five-year options in top fixes.
  
  
• Do you need cash ISAs? As savings interest has been tax-free for most since 2016, a tax-free cash ISA isn't the no-brainer it once was. But if you've lots of savings or a high income (where your tax-free allowance is less or nothing at all), an ISA may be worth it. Note that ISAs retain their tax-free status forever - unless the rules change - so may still be worth it long term.
  
  The top payer is Virgin Money's 1.36% AER variable account. You can open it with £1, but you can only withdraw twice a year. More help and options in Top Cash ISAs.
  
  
• Earn 5% on smaller savings. Some current accounts pay a higher rate, but only on a small amount. Nationwide* pays 5% AER fixed in year one on up to £2,500 (1% AER variable after), though you'll need to pay in £1,000+/mth. More options and full eligibility criteria in high-interest current accounts.
  
  
• Saving for a first home? Get a 25% bonus from the state. Lifetime ISAs let 18 to 39-year-olds save up to £4,000 a year, and you get a quarter of what you put in as a bonus. But you'll pay a penalty if you need access to your cash for anything other than a first home (or retirement). Check if it's right for you in our Lifetime ISA guide.