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6 of the best monthly interest savings accounts

6 of the best monthly interest savings accounts

Category: Savings
12/06/2018

Monthly interest savings accounts pay interest on your savings every month – as opposed to yearly – and can therefore let you take a regular income from your hard-earned cash.

This can be ideal if you've got a significant savings pot, as it means that you can earn some decent interest while keeping your cash out of arm's reach. This makes them particularly popular among retirees, who can use the money they've saved up over the years to help supplement their income.

However, those relying on a monthly income should note that these savers are particularly vulnerable to low interest rates, which is why it's so important to find the right account. With most offering a variable rate, you'll want to be confident in your choice, and most of this comes down to finding the most competitive rate and notice term – so you can also change accounts without too much fuss if the rate were to drop.

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
Charter Savings Bank
95 Day Notice - Issue 18
1.67%
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted on 95 days' notice
  • Access via nominated current account
  • Internet-operated

In first place is this 95-day notice deal from Charter Savings Bank, which pays 1.67% AER (1.66% gross) on a monthly basis from an initial deposit of £1,000. Savers can make further additions at any time, and can request unlimited withdrawals, provided the notice period is observed.

AER Details
Paragon Bank
Paragon Bank
120 Day Notice (Issue 9)
1.66%
  • Variable rate account
  • £500 minimum deposit
  • Further additions allowed
  • Withdrawals permitted on 120 days' notice
  • Access via nominated current account
  • Internet-operated

Close behind in second place is this 120-day notice deal from Paragon Bank that pays 1.66% AER (1.65% gross) on a minimum investment of £500. Further additions and withdrawals are allowed without limit, but the latter does always require the full notice period to be observed.

AER Details
Gatehouse Bank
Gatehouse Bank
120 Day Notice Account
1.53%
(expected profit rate)
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Unlimited withdrawals permitted subject to 120 days' notice
  • Internet-operated
  • Sharia'a compliant account
  • Interest must be paid away

Completing the top three is Gatehouse Bank (formerly known as Milestone Savings) with another 120-day notice deal. This one is a Sharia'a compliant account that pays an expected profit rate of 1.53% AER (1.52% gross) and requires a minimum investment of £1,000. Further additions and withdrawals are both permitted, the latter only if the full notice period is served.

AER Details
OakNorth
OakNorth
120 Day Notice Deposit
1.51%
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted subject to 120 days' notice
  • Access via nominated current account
  • Internet-operated
  • Interest must be compounded

Next up is this 120-day notice deal from OakNorth. Paying a rate of 1.51% on a minimum of £1,000, savers can make further additions at will as well unlimited withdrawals, provided the required notice period is given. Note that interest must be compounded on this account, which will make it unsuitable for savers looking to have income from their savings paid away on a monthly basis.

AER Details
Charter Savings Bank
Charter Savings Bank
60 Day Notice - Issue 7
1.46%
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted on 60 days' notice
  • Access via nominated current account
  • Internet-operated

Charter Savings Bank takes fifth place with its second account in the chart. This deal pays 1.46% AER (1.45% gross) on a monthly basis to those who invest at least £1,000. It offers access on a low notice period of just 60 days, while additions can be made at any time.

AER Details
Kent Reliance
Kent Reliance
60 Day Notice - Issue 21
1.45%
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed via cash at branch, cheque, bank transfer or debit card
  • Withdrawals on 60 days' notice or a 60-day loss of interest (method depends on how the account was opened)
  • Access via nominated current account
  • Can be opened and operated online, in branch and by post (must be at least 18 to open and operate online)

Just squeezing into the top six is this account from Kent Reliance, which pays 1.45% AER (1.44% gross) on a monthly basis from an initial investment of £1,000. It allows unlimited withdrawals on either 90 days' notice or loss of interest, which makes this the only account in this list that allows early access.

Information and rates correct as at: 07.06.2018

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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