Monthly interest savings accounts, as the name suggests, pay interest on your savings each month (as opposed to yearly) and therefore allow you to take a regular income from your hard-earned cash.
They can be ideal for those with significant savings pots as they'll be able to earn a decent amount in interest yet can still keep their cash saved – retirees, for example, will be able to use the amount they've saved up over the years to help supplement their income.
However, if you rely on your savings for that kind of income boost, it goes without saying that you'll really need to maximise the amount you're getting. That's why finding the right monthly interest savings account is vital.
So, with that in mind, we've compiled the top 6 monthly interest savings accounts to help you get more from your money.
Islamic Bank of Britain 120 Day Notice
Penny says… "Taking the top spot is this deal from Islamic Bank of Britain, paying an indicative profit rate of 1.81% monthly on a minimum investment of £250.
"Savers can benefit from the flexibility of further additions being allowed, however they'll need to give 120 days' notice to access their cash."
Penny says… "In second place is this account from Julian Hodge Bank, another notice account which pays a competitive 1.70% monthly.
"Savers can benefit from the flexibility of making further additions while the lower notice requirement will add to the appeal, and with tiered rates of interest those who have a larger savings pot could benefit even more."
Penny says… "Just making the top three is this deal from GE Capital Direct, an internet-only account that pays a competitive 1.55% monthly.
"Further additions and withdrawals are again permitted, with withdrawals subject to 100 days' notice being given."
Penny says… "In fourth place is this account from Norwich & Peterborough, paying 1.40% monthly on a minimum investment of just £1.
"Savers will again need to give 90 days' notice for penalty-free access to their cash, however the flexibility of early access (subject to loss of interest) will add to the appeal."
Yorkshire BS Triple Access Saver Issue 3
Penny says… "This simple, flexible account from Yorkshire Building Society easily makes the top five, again paying a competitive rate of 1.40% on a minimum investment of £100.
"Further additions are permitted and unlike previous accounts there's no notice required for savers to access their cash, however it only allows three withdrawal days per year."
Coventry BS PostSave Easy Access (2)
Penny says… "This postal-operated account again offers 1.40% monthly, this time on a minimum investment of £500, putting Coventry BS squarely in the top six.
"Additions can be made at any time and withdrawals are permitted too, however only 12 are allowed per year – any more will result in 30 days' loss of interest being applied."
Information & Rates correct as at: 29/05/2014
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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