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6 of the best monthly interest savings accounts

6 of the best monthly interest savings accounts

Category: Savings

Updated: 08/06/2017
First Published: 08/06/2017

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 savings 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.


AER Details

Charter Savings Bank
120 Day Notice Issue 11
1.35% AER
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted subject to 120 days' notice
  • No earlier access
  • Account must be opened and operated online
  • Access via nominated current account

Comfortably taking the top spot is this internet-operated deal from Charter Savings Bank. Paying a market-leading 1.35% AER (1.34% 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

Paragon Bank
120 Day Notice Account
(Issue 6)
1.30% AER
  • Variable rate account
  • £500 minimum deposit
  • Further additions allowed
  • Withdrawals permitted subject to 120 days' notice
  • No earlier access
  • Account must be opened and operated online
  • Access via current account

In second place is this 120-day notice deal from Paragon Bank that pays 1.30% AER (1.29% gross) on a monthly basis from an initial deposit of £500. Savers can make further additions at any time, and can request unlimited withdrawals, provided the notice period is always observed.


AER Details

Al Rayan Bank
120 Day Notice
1.21% AER
  • Variable rate account
  • £250 minimum deposit
  • Further additions allowed
  • Unlimited withdrawals permitted subject to 120 days' notice
  • Account can be opened and operated in branch, by phone, by post, online and via mobile app
  • Sharia'a compliant account

Securing a place in the top three is this 120-day notice deal from Al Rayan Bank, a Sharia'a compliant account that pays an expected profit rate of 1.21% AER (1.20% gross). It requires a minimum investment of £250 and can be opened via the full spectrum of channels, with further additions and withdrawals both permitted, the latter subject to the full notice period being served.


AER Details

Charter Savings Bank
Easy Access Issue 4
1.11% AER
  • Variable rate account
  • £1,000 minimum deposit
  • No notice account
  • Further additions allowed
  • Withdrawals permitted
  • Account must be opened and operated online
  • Access via nominated current account

Charter Savings Bank has secured a second account in the charts, this time its easy access deal that pays 1.11% AER (1.10% gross) on a monthly basis. It requires a minimum investment of £1,000 and is one of the few accounts in this overview that requires no notice whatsoever - savers can make further additions at will together with unlimited withdrawals, offering the height of flexibility.


AER Details

RCI Bank UK
Freedom Savings Account
1.10% 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 by phone and post as well
  • Access via nominated account

In fifth place is this deal from RCI Bank UK, a restriction-free account that pays 1.10% AER on a monthly basis (1.09% gross) 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 limit). Savings are protected under the French depositor compensation scheme.


AER Details

Virgin Money
Defined E-Saver Issue 12
1.05% AER
  • Variable rate account
  • £1 minimum deposit
  • Further additions at any time
  • Three no notice withdrawals allowed per calendar year (0.25% will be paid for the remainder of the year if this limit is exceeded)
  • Internet-operated account

Just squeezing into the top six is this account from Virgin Money; it pays 1.05% AER on a monthly basis from an initial investment of just £1, and allows further additions at will. However, while withdrawals are also permitted without notice, only three will be allowed on a penalty-free basis per calendar year, so savers will need to carefully consider if they'll need further access.

Information & Rates correct as at: 08.06.2017

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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