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, these savers are also 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 accounts that pay interest monthly to help you get more from your money.
Comfortably taking the top spot is this internet-operated deal from Charter Savings Bank. Paying 1.05% AER (1.04% 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 deal from RCI Bank UK, a restriction-free account that also pays 1.02% AER on a monthly basis 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).
This internet-operateds account from Post Office Money secures a top-three spot by paying 1.01% AER (1.00% gross) from a minimum investment of just £1. Further additions and unlimited withdrawals are welcome, with no notice required to access your funds. However, it should be noted that this account comes with a 12-month bonus, which means the rate will needto be re-evaluated in a year's time.
Charter Savings Bank has secured a second account in the charts, this time with the 60-day version of its notice account, which pays 1.01% AER on a monthly basis from an initial deposit of £1,000. Savers can benefit from the flexibility of making further additions at their leisure, and withdrawals are also permitted, provided the notice period is always observed.
Securing a place in the top five is this deal from ICICI Bank UK, a no notice account that pays 1.01% AER 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 must have or open a linked ICICI Bank current account for transactions.
Just squeezing into the top-six is this simple, straightforward account from NS&I: it pays 1.00% AER on a monthly basis from an initial investment of £500, and it allows further additions and withdrawals at will, offering an easy access deal with monthly income benefits.
Information & Rates correct as at: 24.01.2017
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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