6 of the best monthly interest savings accounts - Savings - News - Moneyfacts


6 of the best monthly interest savings accounts

6 of the best monthly interest savings accounts

Category: Savings

Updated: 28/05/2015
First Published: 29/05/2014

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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.

Here are the top 6 monthly interest savings accounts:


Islamic Bank of Britain
120 Day Notice

1.81% AER
  • 250 minimum deposit
  • Further additions permitted
  • Withdrawals allowed subject to 120 days' notice
  • Earlier access not permitted
  • Account can be opened and operated online, in branch, by post or by phone
  • Sharia'a compliant account

Penny saysPenny 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."


Julian Hodge Bank

90 Day Notice Deposit
1.70% AER
  • £1,000 minimum deposit
  • Tiered rates of interest depending on balance (up to 1.80% AER at £50K)
  • Further additions allowed
  • Withdrawals permitted subject to 90 days' notice
  • Postal-operated account (but can be opened in branch or by post)

Penny saysPenny 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."

Card details

GE Capital Direct

GE 100 Day Notice Issue 4
1.55% AER
  • £500 minimum deposit
  • Further additions allowed
  • Withdrawals permitted subject to 100 days' notice
  • Additions and withdrawals must be made via a nominated account or GE savings account
  • Account must be opened and operated online
  • Early access not permitted

Penny saysPenny 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."


& Peterborough BS
Branch Notice Saver (Issue 3)
1.40% AER
  • £1 minimum deposit
  • Further additions allowed
  • Withdrawals permitted subject to 90 days' notice
  • Earlier access on 90 days' loss of interest
  • Account must be opened in branch but can then be operated via branch, post or phone

Penny saysPenny 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."


Triple Access Saver Issue 3

1.40% AER
  • £100 minimum investment
  • Further additions and withdrawals allowed
  • Instant access account
  • 3 withdrawal days per anniversary year
  • Account can be managed in branch or by post

Penny saysPenny 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)

1.40% AER
  • £500 minimum deposit
  • Further additions permitted
  • No notice account
  • 12 penalty-free withdrawals allowed per year then 30 day loss
  • £500 minimum withdrawal
  • Account can be opened by branch, post, phone or online but must then be operated by post only

Penny saysPenny 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

What next?

Find all the best saving account deals

Variable monthly interest savings accounts

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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