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.
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.
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.
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.
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).
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.
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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