Regular savers: why the headline rate overstates what you earn
Facts checked 30 October 2026
A regular saver lets you pay in a capped amount each month, typically for 12 months, at a high fixed rate. The catch: each payment only earns interest from the day it goes in.
A worked example
Pay £300 a month for 12 months into an account paying 7.00% AER:
- You pay in 12 × £300 = £3,600.
- The first £300 earns for 12 months, the last for one month. Adding up each payment's interest gives about £135.09.
- That is 135.09 ÷ 3,600 = about 3.75% of what you paid in: roughly half the headline rate.
When they make sense
They suit saving from income rather than a lump sum. Many require a current account with the same bank; we list that condition on every account. At the end of the term the money usually moves to an easy access account at a lower rate, so set a reminder.
See the regular saver table.
This guide explains how things work. It isn't personal advice; if you're unsure what suits you, speak to a regulated financial adviser.