This savings account offers the best of all worlds - a high fixed rate of 4.25%, an incentive to save regularly and the flexibility to access your savings whenever you need to.
Well, with only a few weeks to go until the New Year (yep, Christmas will be over and done with before you know it!) it's a good time to start thinking about those New Year resolutions.
Giving up smoking, cutting back on alcohol and spending more time with our families are always popular choices. But one that's certainly become more popular since the start of the recession is getting our finances in order.
Start saving!
Getting any debts under control is your first priority, closely followed by drawing up a comprehensive budget (and sticking to it). But once you've done all that you can start with the more interesting stuff - and that's saving any surplus cash.
How to save
But what's the best way to go about squirreling your cash away? Well, probably the most lucrative method for tax payers is to open a Cash ISA as all of the interest you earn is tax free.
Other options include easy access savings accounts, which let you get at your cash whenever you like. The only problem is that the interest rates offered tend to be pretty low.
So how can you earn more interest?
A great alternative is a regular savings account. This type of account usually lasts for one year and as it requires you to make regular payments (usually £10 to £250) each month, it means you'll be saving without really thinking about it. And the best bit is this commitment is rewarded as you'll be earning a far more impressive rate of interest than in an easy access account - currently up to 4.5% AER with some regular savers. What's more, this rate is usually fixed for a year.
But beware - miss a payment and with most accounts your interest rate will plummet to practically nothing and your account may even be closed.
A flexible regular saver?
Of course, the solution is to make sure you only agree to stash away as much as you know you can definitely afford each month. But what if you know that due to a fluctuating salary or irregular bills you'll sometimes have a bit more to put away, and sometimes a bit less? Is there a way to get paid a great rate of interest whilst maintaining a bit of flexibility?
Well surprisingly there is one account that might suit. Barclays has recently launched its monthly regular saver that will allow you to reduce your payment here and there, or pay in a bit more in during other months when you've a bit more cash at your disposal. What's more, should you need to, you can even withdraw your cash.
You're probably thinking that's all well and good but I bet the interest rate is pathetic. But the second surprise is that it pays a healthy 4.25% AER - only just lagging behind Moneyfact's current table-topper, Stroud and Swindon BS' Regular Saver (paying 4.5%AER). Not bad.
The small print..
Of course, the devil is always in the detail so I've had a look through the small print.
Essentially you can save between £20 and £250 a month, stashing away a maximum of £3k per year. You can't make any additional deposits to these.
So how can I add more?
Well, the standing order can be amended, so when you have a month with a little more to stash away, simply increase your standing order up to a maximum of £250. Just remember to set it back again for the following month if you want to.
How can I pay in less?
Again you can amend the standing order, although this can be no less than the £20 minimum.
What if I need to get at my cash?
The good news is you can withdraw your money at any time, should you need to. However, this is not without penalty, as during the month when a withdrawal is made your account will earn a lower rate of 3.03% AER.
What happens when the year is up?
Like most regular savers, the account is closed and the cash is moved to a standard (no doubt poor-paying) instant access account. So you'd need to be ready to move that cash quickly.
Is it any good?
Well, it definitely has its good and bad points. On the positive side when many easy access accounts are paying a pitiful 0.01% you can earn a fairly respectable 4.25% AER on your money. Plus you're not tied into saving the same amount each month without fail, which is great when so many of us have fluctuating incomes.
On the other hand, it is still a regular saver which will punish you should you need to withdraw your cash (that said, as some regular savers will insist on closing your account should you need to withdraw your cash or paying a pitiful rate this doesn't seem too terrible).
And the highest rate you can currently get on an instant access account is 3.15%, so only 0.12% more than the regular saver in a month in which you make a withdrawal.
And while the account is easy for a Barclays customer to open, new customers will have to suffer the irritation of having to go into a branch (where staff will no doubt attempt to persuade you take out a plethora of other Barclays products).
But all in all it does provide us with the chance to earn a half decent rate of interest whilst still giving a bit of flexibility. For a regular saver, this is a good option and certainly a step in the right direction in the bid to get us into the saving habit.
Apply for the Barclays Bank regular savings account via lovemoney.com
Save more with lovemoney.com
If you are trying to get into the savings habit, there are plenty of ways lovemoney.com can help.
First of all, check out the tips in our: Build up your savings goal
Next, why not watch this video: How to... save when you've got no money
And finally, if you have any further savings questions why not pick the brains of your fellow lovemoney.com readers in our Q&A section?
More: The top 11 regular savers |Earn up to 8% on your savings