Households chasing steadier returns face a fresh battle for their cash as high-street names revive eye-catching regular saver deals again.
A standout option has arrived for current account customers at Nationwide Building Society, with a regular saver headline rate and room for limited withdrawals. Rival providers still flaunt bigger percentages on paper, yet stricter rules often rein in the gains. The choice now hinges on your monthly budget, your need for access, and how long you can leave the money untouched.
Nationwide regular saver: key features
Nationwide’s Flex Regular Saver pays 6.5% AER. You can start with £1 and pay in up to £200 each month for 12 months. Nationwide pays interest on the anniversary of opening. The account is open to UK residents aged 16 or over who also hold a Nationwide current account.
6.5% AER on up to £200 a month, three fee-free withdrawals, then a drop to 1.25% after a fourth.
Eligibility and access
- Must hold a Nationwide current account.
- Available from age 16, UK residents only.
- Open with £1 and fund monthly by standing order or transfers.
Deposits and interest
You can pay in up to £200 each month, for a total of £2,400 across the year. Because the balance builds gradually, your interest reflects the average balance, not the final pot. On the current rate and full monthly funding, a saver would earn roughly £84.50 over 12 months.
Maximum contribution over the term: £2,400. Estimated interest if fully funded: about £84.50.
Withdrawals and penalties
The account allows up to three withdrawals without denting the rate. After a fourth withdrawal, Nationwide reduces the rate to 1.25%. That flexibility sets it apart from many regular savers that lock your money for the full term.
How it stacks up against rivals
Several providers headline even bigger regular saver rates, though the small print can be tighter. Some cap the term at six months. Others block withdrawals entirely. A few allow larger monthly deposits but pay interest at the end of the term only.
| Provider | AER | Term | Monthly cap | Max paid in | Estimated interest | Withdrawal rules |
|---|---|---|---|---|---|---|
| Nationwide | 6.5% | 12 months | £200 | £2,400 | ≈ £84.50 | 3 fee-free; fourth drops rate to 1.25% |
| Principality | 7.5% | 6 months | £200 | £1,200 | ≈ £27.53 | No withdrawals; interest at maturity |
| Zopa | 7.1% | 12 months | £300 | £3,600 | ≈ £137 | Withdrawals allowed without penalty |
| First direct | 7.0% | 12 months | £300 | £3,600 | ≈ £136.50 | Typically no withdrawals; interest at term end |
Those figures use simple illustrations based on maximum regular funding from month one. Real returns vary with timing, funding consistency, and any mid-term rate changes. A higher AER does not always deliver the most pounds in your pocket if the term is short or access is tightly restricted.
Principality: headline rate, tighter term
Principality’s 7.5% AER stands out. The term lasts six months and interest lands at maturity. You can pay in up to £200 per month, taking the pot to £1,200. Estimated interest of around £27.53 over that half-year reflects the shorter runway. No withdrawals means you must leave funds untouched.
Zopa and first direct: higher caps, flexible access
Zopa advertises 7.1% AER over 12 months with a £300 monthly cap. That enables a larger final pot of £3,600 and an illustrated return near £137. Zopa also allows withdrawals without penalty, which suits those who want a safety valve.
First Direct sits close behind at 7% AER. It also allows £300 per month over 12 months, with a similar estimated return in the region of £136.50. Many regular savers from banks like First Direct restrict withdrawals; that helps the provider sustain a higher rate.
Who might benefit from this type of account
Regular savers reward discipline. You commit to small, steady pay-ins. Over time, that habit builds a cash buffer without a large initial outlay. Savers who want some access can find Nationwide’s three fee-free withdrawals reassuring. Those who can lock money completely might chase the top headline rates instead.
Saving little and often builds resilience. A regular saver turns good intentions into a monthly routine you can stick to.
Key numbers at a glance
- Nationwide rate: 6.5% AER, interest paid on anniversary.
- Monthly cap: £200; total over 12 months: £2,400.
- Access: three withdrawals allowed; a fourth trims the rate to 1.25%.
- Illustrative interest: about £84.50 if you fund the full amount each month.
- Eligibility: UK residents aged 16+ with a Nationwide current account.
What to watch before you apply
Check account conditions. Some regular savers demand a linked current account. Others limit or block withdrawals. A few revert to a low-paying easy-access pot after the term ends. Set a calendar reminder near maturity so you can move the money if the follow-on rate disappoints.
Keep tax in mind. The personal savings allowance shields up to £1,000 of interest for basic-rate taxpayers and up to £500 for higher-rate taxpayers. Additional-rate taxpayers do not receive an allowance. Regular saver interest can push you over the line if you hold other savings too.
Consider deposit protection. Nationwide, Principality, Zopa Bank and First Direct fall under the Financial Services Compensation Scheme. Eligible deposits receive protection up to £85,000 per person, per institution. That limit applies across brands that share a banking licence.
A worked example for your budget
Say you can spare £150 a month. In Nationwide’s account, you would pay in £1,800 over a year. With 6.5% AER and monthly funding, your estimated interest lands around the mid-£60s. Need absolute access? A flexible rival with a higher rate could deliver a touch more interest, but only if you resist dipping in. If you must lock the money completely, a six-month product with a bigger AER may still yield less cash because the term is shorter.
Practical tips to make it pay
- Automate the standing order for the day after payday to avoid missed months.
- Use the three withdrawals sparingly, reserving them for genuine emergencies.
- Track rate changes; providers can adjust variable rates during the term.
- Plan the next destination for your pot before the anniversary date.
For many savers, the Nationwide deal strikes a balance: a solid rate, monthly discipline, and limited access for emergencies. If you can fund more than £200 each month, a rival with a higher cap might suit you better. If you need every penny on call, easy-access accounts with competitive variable rates could make more sense for day-to-day flexibility.
Great breakdown! The average-balance math explains why 6.5% only nets ~£84.50 if you max out. Super helpful 🙂