HSBC and First Direct decrease the common financial savings charge to 1%
Now what are the highest regular savings rates?
The regular savings accounts from First Direct and HSBC were among our top offers, but they didn't offer the best price currently available at NatWest and RBS.
The two sister banks offer variable interest rates of 3.04% on their regular savings accounts. However, you can only save a maximum of £ 50 per month, compared to £ 25-250 per month with HSBC and between £ 25-300 with First Direct.
Both accounts have floating interest rates, which means the return is not certain – although the accounts have unlimited withdrawals, if the interest rate drops, you can move your money with impunity. You must also have or open a NatWest or RBS checking account to access the linked savings accounts.
If you don't have one of these checking accounts and don't want to open an account, there are open regular savings accounts that beat the new 1% rate from HSBC and First Direct.
For example, Coventry Building Society pays 1.55% floating interest and you can save up to £ 500 per month in it. It also allows early withdrawals, although you are aware that there is a 30 day interest penalty and again the variable is variable. So it's worth keeping an eye on in case it falls.
For full details on the options available, see our Regular Savings Account Guide. If you want to save more every month, you can earn up to 0.7% interest on an easy access account or up to 0.92% when you're ready to lock your money away for a year. For full details, see our guide to Top Savings Accounts.