Top-paying regular savings rates make a welcome return

Top-paying regular savings rates are finally returning – but beware the small print.

First Direct has raised the rate on its popular account to 3.5 per cent if you save £25 to £300 a month for a year.

If you put away the maximum £3,600 you could earn about £68 in interest.

Top returns: First Direct has raised the rate on its popular account to 3.5% if you save £25 -£300 a month for a year

The deal is only available to customers with a current account at the bank. Be aware if you need to access your cash before the 12-month deal ends, the rate will plummet to 0.1 per cent.

NatWest and RBS Digital’s regular saver pays 3.3 per cent on savings of between £1 and £150 a month. But you only earn this top rate on the first £1,000 in your account.

If you save the maximum £1,800 over a year, you could earn £25.58 in interest.

It, too, is only open to current account holders and you must open the account online or via the bank’s smartphone app. You can take money out if you need.

Other organisations with good rates for current account customers include TSB and its Monthly Saver at 2 per cent and Nationwide’s Flex Regular Saver at 2.5 per cent.

TSB lets you take out money during the 12-month term while Nationwide restricts you to four withdrawals during the year.

The top rate comes from Cambridge BS at 5 per cent on its Extra Reward Regular Saver for those who have had a mortgage or savings account with it for three years or more.

You can’t make withdrawals in the 12-month saving period. If you close your account early you lose 90 days’ interest.

Bath BS pays 4.65 per cent for locals aged 16-25.

West Bromwich Adult Regular Saver at 2 per cent for 12 months on £10-£100 a month is open to all through its branches. Your money will be tied up for a year.

sy.morris@dailymail.co.uk