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, the nature of these savers makes them 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 a monthly 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.
Easily taking the top spot is this internet-operated deal from Charter Savings Bank. Paying 1.31% AER (1.30% 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.
Charter Savings Bank also takes second place, this time with 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 same flexibility as the number one account, only with a slightly decreased rate in exchange for a shorter notice period.
Charter Savings Bank goes for all the medals and takes up all top-three spots, the third being a 30-day notice account that pays 1.04% AER (1.04% gross) on a monthly basis from an initial deposit of £1,000. Again, savers will have to choose between the flexibility of a shorter notice period and the competitiveness of the rate on offer, with the remaining features mirroring those of the top-two deals.
Taking fourth place is this deal from ICICI Bank UK, a no notice account that pays 1.00% AER (1.00% 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 savers must have or open a linked ICICI Bank current account for transactions.
Next up is this offer from RCI Bank UK, a restriction-free account that also pays 1.00% AER (1.00% gross), this time from a minimum investment of £100. It 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).
Just squeezing into the top-six is this no notice account from NS&I, which also pays 1.00% AER (1.00% gross), from a minimum investment of £500. It allows further additions at will, together with unlimited withdrawals, provided they're of at least £500 and dont bring the balance below that level. One of the unique benefits of an NS&I account is that it is Treasury-backed, making it as secure as they come.
Information & Rates correct as at: 06.12.2016
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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