Top regular savings rates return

TOP-PAYING regular savings rates are finally returning — but beware the small print.

First Direct has raised the rate on its popular account to 3.5 pc if you save £25 to £300 a month for a year.

If you put away the maximum £3,600 you could earn about £68 in interest.

The deal is only available to customers with a current account at the bank. Be aware if you need to access your cash before the 12-month deal ends, the rate will plummet to 0.1 pc.

NatWest and RBS Digital’s regular saver pays 3.3 pc on savings of between £1 and £150 a month. But you only earn this top rate on the first £1,000 in your account.

If you save the maximum £1,800 over a year, you could earn £25.58 in interest. It, too, is only open to current account holders and you must open the account online or via the bank’s smartphone app. You can take money out if you need.

Other organisations with good rates for current account customers include TSB and its Monthly Saver at 2 pc and

Nationwide’s Flex Regular Saver at 2.5 pc. TSB lets you take out money during the 12-month term while Nationwide restricts you to four withdrawals during the year.

The top rate comes from Cambridge BS at 5 pc on its Extra Reward Regular Saver for those who have had a mortgage or savings account with it for three years or more. You can’t make withdrawals in the 12-month saving period. If you close your account early you lose 90 days’ interest.

Bath BS pays 4.65 pc for locals aged 1625. West Bromwich Adult Regular Saver at 2 pc for 12 months on £10-£100 a month is open to all through its branches. Your money will be tied up for a year.