Product focus: Monthly interest bonus accounts - Savings - News - Moneyfacts

News

Product focus: Monthly interest bonus accounts

Product focus: Monthly interest bonus accounts

Category: Savings

Updated: 16/06/2010
First Published: 16/06/2010

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 It is now over 6 months old so the content may be out of date.

A fall in the Consumer Prices Index, from 3.7% to 3.4%, will have come as a surprise to some who may have anticipated yet another rise.

Unfortunately the slump in inflation may prove to be short-lived. The new coalition Government's emergency Budget, due on 22nd June, is expected to include a rise in VAT which could see a U-turn in CPI and further misery for savers. In the event of inflation increasing, savers opting for an account paying monthly interest may suffer the most.

The main appeal of monthly interest accounts is that funds can help to supplement income.

Here is a selection of the current best monthly interest accounts, which all include an introductory bonus.

ING Direct (UK) – Savings Account

ING Direct's Savings Account pays 2.72% including a bonus of 2.22% for twelve months. The gross rate is guaranteed to be fixed at 2.72% for twelve months. Savers can invest between £1 and £1 million. No advance notice is required to access funds although all withdrawals must be made via a nominated current account. The account can only be operated by telephone or online by savers aged 18 and over.

Chelsea Building Society – Chelsea Bonus 90 (2nd Issue)

This account pays 2.72% including a bonus of 1.00% for twelve months. Savers can invest between £1 and £500,000. Advance notice of 90 days must be given to access funds, although early access is allowed subject to 90 days loss of interest. After one year all withdrawals become notice and penalty free. The account is available to savers aged 16 and over and can be operated in branch and by post.

Birmingham Midshires – Telephone Extra Issue 2

This account pays 2.72% including a 2.25% bonus for twelve months. Savers can invest between £1 and £1 million. The initial deposit must be made by personal cheque from a nominated account. No notice is needed to access funds, although all withdrawals must be made via a nominated current account. The account is available to savers aged 16 and over and can be operated by telephone only, although application for the account can be done online.

Find the best savings rates for you - Compare savings accounts

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.

Related Articles

6 of the best monthly interest savings accounts

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.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close