Regular Savings accounts and interest explained

A Regular Savings account could be a great choice if you want to earn interest on your savings without locking them away. If you’re going to make regular deposits, even if it’s just little and often, your savings will grow from your contributions and the interest generated. You may have a specific savings goal such as a holiday or you might just be trying to get into better habits by spending less and saving more. Either way, a Regular Savings account will give you that extra boost.

How does interest on a Regular Savings account with Kent Reliance work?

1. The interest rate is variable

A variable interest rate means it can go up or down at any time. This could be due to Bank of England rate changes or due to other market variations. The most up to date information can be found on our interest rates page.

2. Interest is calculated daily

Interest on your savings is calculated daily, which means if you keep topping up to the monthly limit, you’ll earn more interest immediately. If you withdraw funds the interest will be less because it’s based on the lower account balance. In short, your savings will grow faster the sooner you pay money in and the longer you keep it in your Regular Savings account over the duration of a year.

3. Interest is paid annually

At the end of the 12-month term, any interest your savings have earned will be credited to either your Regular Savings account or your nominated UK account. The amount of interest paid will depend on the interest rate and balance held during the life of the account. For example, if you paid in £500 on the 1^st of every month for a full year, made no withdrawals and the interest rate stayed at 5.10%, your projected total balance would be £6,166.55.

If a Regular Savings account sounds like the right choice for you, find out more here or read more about the different types of savings accounts Kent Reliance offers, including savings, ISAs and bonds.