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6 of the best monthly interest savings accounts

6 of the best monthly interest savings accounts

Category: Savings

Updated: 31/08/2016
First Published: 31/08/2016

Monthly interest savings accounts 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 if you've got a significant savings pot as they allow you to earn a decent amount of interest while keeping your cash out of arm's reach, and they're particularly popular among retirees, who can use the money they've saved up over the years to help supplement their income.

However, it also means that these savers are particularly vulnerable to falling interest rates, which is why it's so important to find the right account. If you rely on your savings for that kind of income boost you really need to maximise the amount you're getting, and that all comes down to securing the best rate.

So, with that in mind, we've compiled the top six monthly interest savings accounts to help you get more from your money.


AER Details

Charter Savings Bank
95 Day Notice Issue 11
1.36% AER
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted subject to 95 days' notice
  • No earlier access
  • Account must be opened and operated online
  • Access via nominated current account

Easily taking the top spot is this internet-operated deal from Charter Savings Bank. Paying 1.36% AER (1.35% gross) on a minimum investment of £1,000, savers can make further additions at will and are permitted unlimited withdrawals, subject to the required notice period being given.


AER Details

Buckinghamshire BS
Chiltern Gold Income Generator Issue 7
1.35% AER
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted subject to 180 days' notice
  • No earlier access
  • Account can be managed in branch or by post

In second place is this 180-day notice account from Buckinghamshire BS, a branch and postal-operated deal that pays 1.35% AER (1.34% gross) on a monthly basis from an initial deposit of £1,000. As is common in this sector, further additions are welcome, as are withdrawals, but savers should again note that the required notice period must always be observed.


AER Details

FirstSave
60 Day Notice
1.35% AER
  • Variable rate account
  • £5,000 minimum deposit
  • Further additions allowed via nominated account
  • Withdrawals permitted subject to 60 days' notice
  • Early access on 60 days' loss of interest
  • Account must be opened and operated online
  • Access via nominated account

This internet-operated account from FirstSave secures a top three spot by paying 1.35% AER (1.34% gross) to those who have a minimum of £5,000 to invest. Further additions are welcome, as are penalty-free withdrawals when the 60-day notice period is observed. However, savers may be pleased to note that earlier access is also allowed, albeit subject to the loss of 60 days' interest.


AER Details

RCI Bank UK
Freedom Savings Account
1.20% AER
  • Variable rate account
  • £100 minimum deposit
  • Further additions allowed via nominated current account
  • Unlimited withdrawals permitted with no notice required
  • Must be opened online but can then be managed in the same way as well as by phone and post
  • Access via nominated account

Next up is this deal from RCI Bank UK, a restriction-free account that pays 1.20% AER (1.19% gross) from a minimum investment of £100. It's one of only two deals in this overview that doesn't ask you to give notice to access your cash, with unlimited withdrawals and further additions welcome whenever you wish (up to the £1m maximum investment).


AER Details

Charter Savings Bank
60 Day Notice Issue 3
1.20% AER
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted subject to 60 days' notice
  • No earlier access
  • Account must be opened and operated online
  • Access via nominated current account

Charter Savings Bank has secured a second account in the top five, this time the 60-day version of its notice account, which pays 1.20% AER (1.19% gross) on a monthly basis. Savers can benefit from the flexibility of making further additions at their leisure, and withdrawals are also permitted as long as the notice period is observed.


AER Details

ICICI Bank UK
SuperSaver Savings Account
1.15% AER
  • Variable rate account
  • £1 minimum deposit
  • Further additions allowed
  • Unlimited withdrawals permitted via a linked ICICI Bank current account
  • No notice required
  • Account must be opened in branch and can then also be managed by phone, online or mobile app
  • Access via nominated current account

Just squeezing into the top six is this deal from ICICI Bank UK, a no notice account that pays 1.15% AER (1.14% gross) from a minimum investment of just £1. It boasts plenty of flexibility as well as unlimited, penalty-free withdrawals, with the only caveat being that the saver much have or open a linked ICICI Bank current account for transactions.

Information & Rates correct as at: 31.08.2016

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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