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Monthly Savings PlanMonthly Savings Plan
Find out what your regular savings plan could be worth.

Lump Sum InvestmentsLump Sum Investments
Use our interest calculator to work out what interest you could earn on your lump sum. Find out what your lump sum investment plan could be worth.

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Compare Monthly Interest Savings Accounts

  - Compare the best monthly interest savings accounts as chosen by our team of experts. Where we have been able to we have also provided a direct link for you to open an account today.
Also look at:

Compare the Best Monthly Interest Accounts

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Up to 3 products
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AER Notice / Term Minimum Investment Account Opening Search all
1608 Savings
 
Investec Bank plc

Investec High 5 Issue 2
2.08%
6 Month £25000
  1. Yes
  2. No
  3. Yes
  4. Yes
Details...  
Marsden BS

Branch Saver 120 issue 2
2.05%
120 Day £25000
  1. No
  2. Yes
  3. No
  4. No
Details...  
Principality BS

Principality Promise Saver Issue 3
2.01%
30 Day £500
  1. No
  2. Yes
  3. No
  4. No
Details...  
Buckinghamshire BS

Chiltern Gold Income Generator Issue 4
2.00%
180 Day £10000
  1. No
  2. Yes
  3. Yes
  4. No
Details...  
Investec Bank plc

Investec High 10
2.00%
3 Month £25000
  1. Yes
  2. No
  3. Yes
  4. Yes
Details...  
Julian Hodge Bank

90 Day Notice Deposit
1.90%
90 Day £10000
  1. No
  2. Yes
  3. Yes
  4. No
Details...  
GE Capital Direct

GE 100 Day Notice
1.85%
100 Day £500
  1. Yes
  2. No
  3. No
  4. No
Details...  
Islamic Bank of Britain

Sharia'a compliant 120 Day Notice
1.81%
120 Day £500
  1. Yes
  2. Yes
  3. Yes
  4. Yes
Details...  
Investec Bank plc

Direct Reserve 3
1.80%
1 Month £25000
  1. No
  2. No
  3. Yes
  4. No
Details...  
National Savings & Investments

Income Bonds
1.76%
None £500
  1. Yes
  2. No
  3. Yes
  4. Yes
Details...  
Compare
Last Updated: Tuesday 21 May 2013 19:30
Disclaimer:
All rates subject to change without notice. Please check all rates and terms before investing or borrowing.
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Monthly interest savings accounts explained

  • Good if you use your savings interest to supplement your income
  • Fixed and variable rate accounts can pay interest monthly, as well as cash ISAs

The main reason you might want to have your interest paid monthly is to use this interest to top up your monthly income. Alternatively, some people like to see interest applied to their account more regularly, rather than every year, so that they have an appreciation of how their savings are growing.

Not all savings accounts and cash ISAs offer the option to pay you interest monthly. This best buy table shows the best variable rate accounts that do, with fixed rate monthly accounts and cash ISAs available on our whole market savings search.

Most monthly interest savings accounts offer the option to either have your interest kept in the account (where it then benefits from compound interest and helps to grow your savings pot), or to have it paid into a separate account, such as your bank account where you can make use of it in your day-to-day finances.

WarningSome monthly interest accounts may only allow the interest to be paid to a separate account so watch out for this.

Use your savings interest for income? Make sure you:

  • Use your cash ISA allowance(deposit up to £5,640 in 2012-13)
    Savings in a cash ISA earn tax-free interest, so it can really boost your monthly income if you’re a taxpayer. For example, a 3.00% cash ISA is the equivalent of a savings account that pays 3.75% if you’re a basic rate taxpayer. Search for monthly interest cash ISAs.
  • Consider fixed rate bonds and fixed rate cash ISAs
    If you can do without access to your money, fixed rate bonds or fixed rate cash ISAs tend to pay higher rates of interest than the best variable rate monthly interest savings accounts. For example, a fixed rate bond that pays 4% could pay an extra £13 per month over a variable rate account paying 3% (based on a savings pot of £20K, and assuming that you pay basic rate tax). Search for monthly interest fixed rate bonds.

What next?

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