Earn 6% and more on your monthly savings!

Regular saver accounts can offer some really fantastic rates. Jane Baker reveals her top pick.

If you're trying to save a little each month, you'll probably be very pleased to hear that savings accounts for regular savers are paying really handsome rates at the moment.

This is obviously welcome news in what has become a very tough climate for savers.

But the trouble is, some of the best buys are exclusive, and are only available to you if you're already an existing customer with the bank or building society in question. Or, you can become eligible, but only if you're willing to buy other products in the bank's range too.

Now, I'm not too keen on accounts with this kind of catch. So, in my search for the very best regular saver, I'm looking for an account which is available to everyone, and doesn't have more sneaky tricks up its sleeve than you can shake a stick at.

My top choice

So, what's my top choice: In my opinion, the Barclays Monthly Savings account is still the true market-leader. Not only does the account pay a generous fixed rate of 6% AER for the next 12 months, but it's open to all new and existing Barclays' customers alike.

Even better, you'll only need to pay in a minimum £20 a month, so the account should be suitable for all budgets. If you want to pay in a little more, the maximum monthly savings limit is £250.

Be warned

But before you dive in, there are one or two things you should know about regular savings accounts in general.

You'll often enjoy very competitive fixed rates for a set term (usually a year, like the Barclays Monthly Saver). And, these rates easily beat the returns available from the top standard instant access account. But there's a downside.

Withdrawals

Unlike instant access accounts, withdrawals are usually off limits during the fixed rate period. This is supposedly to encourage you to not to dip in to your savings, but it's really just another way for banks to make money out of you.

Because if you find you have to make a withdrawal, you'll normally be charged a penalty. So, if you're going to plump for a regular saver, you should only put in money which you know you can afford to lock away. Otherwise, the penalty could easily wipe out the great rate you would have earned.

Worse still, some regular savers will automatically close if you take money out, which means the impressive rate you have been earning will disappear in an instant. Your savings will normally then be moved into an alternative account which pays a derisory rate.

But, luckily, my favourite Barclays account takes a more generous view on withdrawals. But be careful because a lower fixed rate of 3.03% will be paid in any months when you take money out, so it's best that you don't access your cash unless you really have to.  

Missed payments

Missed payments are usually a no go area too. With most regular savers you'll be expected to pay in the minimum instalment every month at least. And you won't be able to exceed the maximum monthly savings amount either.

But within these two limits, you should find regular savers are pretty flexible. For example, you'll usually be able to vary the amount you pay in each month as much as you like to suit your budget. (Although accounts like the Alliance & Leicester Premier Regular Saver - shown below - insist that the monthly amount you want to pay must be fixed when you open the account.)

Fortunately, Barclays won't actually deduct any interest if you find you're unable to contribute for a month. But if you want to make the most of the rate you're getting, it's wise to try to save as much as you can (up to the £250 maximum a month).

Exclusive accounts

Of course, the Barclays Monthly Saver isn't the only regular savings account on offer. There are even higher rates available, but these accounts are often fall into the exclusive camp, and are only available to existing customers who already hold certain accounts.

That said they may be suitable for you if you happen to meet the eligibility criteria. So, let's take a look at what these exclusive accounts have to offer:

Exclusive regular savers accounts

There's no reason why you shouldn't take advantage of these great rates if you are eligible. After all, 10% fixed for a year is a truly eye-popping return right now. But you should never take out a product or account you don't really need - or one which isn't suitable for you - just so you can apply for an exclusive regular saver.

Whichever regular saver you go for - exclusive or not - when the year is up, you'll almost certainly find your rate has spectacularly plummeted. So, when the times comes, remember you'll need to find a better home for your savings, pronto!

More: Top 20 savings accounts and ISAs | The best possible place for your savings

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