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Product Focus: Monthly interest accounts

Product Focus: Monthly interest accounts

Category: Savings

Updated: 25/01/2010
First Published: 30/09/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Customers tend to favour monthly interest accounts as a means of supplementing income. With many savers struggling with day-to-day expenditure amid the current economic climate, monthly interest accounts allowing instant access to cash are proving particularly popular.

Here is a selection of some the best deals available.

Citibank – Flexible Saver Issue 6

This deal pays a rate of 3.25 per cent including a bonus of 2.25 per cent for 12 months. Interest is paid each month on the date the account was opened. Investments range between £1 and £1m and savers can access cash instantly. The account is open to new customers aged 18 and over and can be operated in branch, by post or telephone and online.

ING Direct (UK) – Savings Account

ING Direct's monthly interest account pays a rate of 3.16 per cent to new customers, including a bonus of 2.66 per cent for 12 months. Also, the gross rate is guaranteed to be fixed at 3.16 per cent for 12 months. Existing savers receive a rate of 0.50pc. They must make their initial deposit by personal cheque and all withdrawals via a nominated account. No notice is required to access funds and savers can invest between £1 and £1m. The account can be operated by telephone and online by savers aged 18 and over.

Chelsea Building Society – Over 50s Instant

This account, available to savers aged 50 or over, pays a rate of 2.72 per cent to savers with a balance of between £25,000 and £50,000. A lower rate of 2.47 per cent is paid to those with a balance less than £25,000, although the minimum investment is £200. Interest is paid on the last working day of each month. The account can be operated in branch with a passbook or cashcard, or by post.

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 Any products featured may be withdrawn by their provider or changed at any time.

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