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Product focus: Monthly interest savings accounts

Product focus: Monthly interest savings accounts

Category: Savings

Updated: 04/12/2009
First Published: 10/11/2009

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 It is now over 6 months old so the content may be out of date.

Savings accounts with a monthly interest option are often favoured by customers who wish to use funds to supplement their income. Here are the current top three accounts that offer savers a monthly interest option:

Investec Bank plc – High 5

This account pays a monthly rate of 3.24pc. The rate is guaranteed to pay the average of the top five gross rates published by Moneyfacts. Interest is also paid annually at a higher rate of 3.29pc. Savers must invest a minimum deposit of £25,000, although there is no maximum amount required. Three months' notice is required to access funds. Early access is allowed, subject to three months' loss of interest or 0.50pc penalty fee (minimum £50). The account is available to savers aged 18 and over and can only be operated by post.

FirstSave – 90 Day Notice

This online only account pays a monthly rate of 3.20pc. The AER rate is guaranteed to be at least 0.25pc above bank base rate until 1st January 2010 or at least equal to bank base rate until 1st January 2012. An annual interest option is available at a higher rate of 3.25pc with the same guarantees. Investments range from £5,000 to £2m, although for annual interest the lowest deposit required is £100. Savers must give 90 days' notice to access cash, although early access is allowed subject to 90 days' loss of interest. Withdrawals must be made via a nominated account. The account is available to savers aged 18 and over.

Chelsea Building Society – Call Direct 120

This account pays a monthly rate of 3.06pc. An annual interest option is also available at a higher rate of 3.10pc and the gross rate is guaranteed to be at least 0.75pc above bank base rate until 8th March 2011. Savers can invest between £1 and £500,000. Advance notice of 120 days must be given to access funds. Early access is allowed, although this is subject to 120 days' loss of interest. After 9th March 2011, all withdrawals are notice and penalty free. The account can be operated in branch or by telephone by savers aged 18 and over.

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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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