Have you made a new year’s resolution to save more of your salary at the end of the month? The best way to squirrel away that extra cash and pick up a sky-high rate of return would be a regular savings account.

However, it is safe to assume that the more interest a bank promises, the more hoops you have to jump through to qualify. And though the advertised rate is higher, you may not earn as much interest as you would expect. Sue Hannums, of AWD Chase de Vere, the independent financial adviser, says: “The biggest benefit of regular savings accounts is that you have to be disciplined about saving. However, in exchange for a good rate of interest, you lose access to your cash for at least a year.”

The four best-buy accounts certainly have eye-catching rates. Alliance & Leicester holds top spot with a 12 per cent return over a year on its Premier Regular Saver – the best rate on any cash account. So what’s the catch? The account can only be opened if you are willing to switch your current account to the Premier current account. Furthermore, you have to pay in at least £500 a month to the current account.

Bear in mind that the regular saver is open for only one year, after which your savings will be transferred to the current account. There is also no early access to your cash. You can apply only once and the minimum that you can pay in each month is £10. The maximum is £250. If you pay in the maximum monthly deposit, you will earn only £195 before tax when the year is over.

The advertised rate of 12 per cent applies over the entire term, rather than each month. David Black, of Defaqto, the financial information company, explains: “Many people assume that if they invest £100 a month for a year at 12 per cent, they will earn gross interest of £144. In reality, only the initial monthly investment earns interest for the full year.”

HSBC, Abbey and Newcastle Building Society are also promoting regular saving accounts with a 10 per cent rate. Enter a branch to open an account, however, and you will find that the catches are similarly strict.

You cannot apply for the HSBC Premier Regular Saver unless you are already paying £12.50 a month for HSBC’s Bank Account Plus, £6 a month for a Passport account, available to migrants, or are considered a Premier customer, meaning that you have £50,000 of investments with the bank, or a mortgage of £250,000 plus a salary of more than £75,000. Deposits are restricted to a maximum of £250 a month. If you need to access your cash, the account will be closed and revert to a Flexible Saver account paying a paltry 3.2 per cent. The total interest you can earn after a year is £162.18 before tax. At the end of the term your money is transferred to a Flexible Saver account.

Abbey and Newcastle Building Society also both require you to open an investment account before you are allowed to request a high-interest regular saver account.

Ms Hannums says: “The accounts offer a great rate but most customers will be unwilling to take the steps required to open them, such as switching current accounts or opening other investment accounts. It is a big commitment to make for an account that is only available for a year.”

There are more flexible ways to start a new savings habit. The Skipton Christmas Saver is open to anyone and guarantees a rate of 7.55 per cent on deposits of £250 a month until November 25. Like most regular savings accounts, no withdrawals are allowed and your money is transferred into an instant-access account at the end of the term. You can earn a maximum of £99.75 interest before tax, assuming that you open the account with £250 on January 25.

If you have more than £250 a month to save, you could consider an account with a higher maximum deposit, even if the interest rate is lower. Save £500 a month with the Principality Building Society’s Regular Saver Bond 5, offering a rate of 7 per cent, and you will pocket £227.59 in gross interest by the end of the year.

CASE STUDY

Graeme Paterson, left, opened a Premier Regular Saver account with Alliance & Leicester to help him to build a deposit on his first house.

The 23-year-old construction consultant has been with Alliance & Leicester since he was 15 but upgraded to a Premier current account last year and opened the savings account at the same time. He deposits about £400 a month in two savings accounts, both with Alliance & Leicester.

Mr Paterson opted for the regular savings account because his money would be locked away for a year. “It is easier to save if you can’t get access to the money,” he says.

He was also impressed by the 12 per cent interest rate, adding: “I checked comparison websites and this was the best rate around.”