Regular saver accounts can bring big interest rewards

Andrew Hagger of Moneynet.co.uk focuses on the regular savings market and the potential benefits for savers.

With instant access savings accounts now paying an average of just under 0.75% according to the latest research from moneynet.co.uk, it's important for consumers to explore alternative savings products in an effort to get a half decent return on their cash.

There are better rates, often fixed, available if you're prepared to consider putting a regular sum of cash away on a monthly basis. Whilst it may seem like too much hassle, in reality it's pretty straightforward and a few minutes work can see you handsomely rewarded.

With a Regular Savings account, it's possible to earn over three times as much annual interest income as an average instant access account, and over twenty times as much as some of the poorest paying deals, surely enough to make it an option worth investigating.

Regular Saver accounts are not just for people looking to build their first savings nest egg but also provide a way of boosting interest income for those who already have some cash put by.

The fairly rigid terms and conditions of these accounts may sometimes put people off, but for a new saver they provide the extra discipline which may prevent them giving up too easily on the very important habit of saving regularly.

The downsides of these accounts are that the amount you can save on a monthly basis is limited (usually a maximum £250 per month) and access to your cash is not permitted without penalty or closure of the account, however if you're aware of this from the off, then the rewards more than outweigh the account restrictions.

For example, if you've got £3,000 sitting in one of the many savings accounts paying just 0.1%, by drip feeding £250 per month into a regular savings account paying 4.00% you will see your annual savings return rocket from a mere £2.40 (net of basic rate tax) to a far more acceptable £51.75.