Regular Savings Accounts

With Regular Savings Accounts, frequent deposits are required at a regular time interval, usually each month. These will usually be subject to strict minimum and maximum deposit amounts and lump-sum investments are often not permitted. Due to the nature of a regular savings account, a certain number of regular deposits must normally be made in order to benefit from the higher bonus interest rates. Instant-access accounts are the most common type of regular savings account but notice (see Notice Accounts) and fixed-term regular savings accounts are also widely available.

Although there are rigid restrictions on most regular savings accounts regarding deposits, the interest rate offered can be very good, providing all conditions are satisfied. In addition, due to the obligatory minimum monthly deposit, the balance can accumulate quickly. This type of account is ideal for account holders who need a place to save on a regular basis, for example for a certain item or expense, but the fact that these types of account have a maximum balance limit will restrict serious investors. For this reason, regular savings accounts are aimed at medium-term investment.