6 of the best monthly interest savings accounts | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 16/06/2020

Savers who rely on their savings as part of their monthly income will be feeling the effects of declining savings interest rates. We’ve compiled a list of the top paying monthly interest savings accounts, based on a balance of £25,000 with directly UK authorised banks for protection under the Financial Services Compensation Scheme (FSCS.) They are shown in rate order below.

 

Provider

Account

Term

Rate AER

UBL UK

7 Year Fixed Term Deposit

7 Year Bond

1.45%

RCI Bank UK

Fixed Term Savings Account

5 Year Bond

1.40%

UBL UK

5 Year Fixed Term Deposit

5 Year Bond

1.40%

The Melton Building Society

Online 100 Day Notice

100 Day

1.36%

RCI Bank UK

Fixed Term Savings Account

4 Year Bond

1.35%

Shawbrook Bank

7 Year Fixed Rate Issue Bond

7 Year Bond

1.35%

UBL UK offers the best rate for a monthly interest account with its seven-year bond at 1.45% AER fixed. This account can be opened in branch or by post with a minimum deposit of £2,000. UBL UK will allow savers to access their funds before the maturity date of the bond, but subject to an interest penalty of 730 days.


RCI Bank and UBL UK both offer the next best rate for a monthly interest savings account with their five-year fixed term accounts at 1.40% AER. Savers can open their accounts by post or in branch with UBL UK, while RCI only offers account opening online. UBL UK allows early access to funds subject to a loss of 365 days interest, however fixed term savers with RCI Bank cannot make any withdrawals before the maturity date.


Savers who prefer faster penalty-free access to their money could consider the Online 100 Day notice account from the Melton Building Society paying 1.36% AER. . This account can be opened online with a minimum balance of £1,000.


The accounts in position five and six of our top paying monthly interest savings accounts are from RCI Bank and Shawbrook Bank. Both are fixed term bonds at a rate of 1.35% AER, RCI Bank offers a four-year term and Shawbrook Bank a seven-year term. Both accounts can only be opened online with a minimum balance of £1,000. These accounts do not allow early withdrawals.

A current account has the highest monthly interest rate

The Virgin Money Current Account has an interest rate of 2.02% AER paid monthly up to a maximum balance of £1,000. There is also the option to open a linked Virgin Money savings account paying 1.00% AER up to 30 June 2020 and 0.50% AER from 1 July 2020. The account also comes with the Virgin Money app allowing consumers to view their transactions, sort their spending by category and create savings pots.

See more bank accounts. 

A regular savings account offers a competitive rate of monthly interest

Virgin Money is also offering its Regular E-Saver Issue 16 with monthly interest. This account pays 1.50% AER and this rate is fixed until 20 May 2021. Savers can invest between £1 to £250 each month during the lifetime of the account. There are no restrictions on withdrawals.

Savers compare the best savings accounts using our comparison charts.

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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