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6 of the best monthly interest savings accounts

6 of the best monthly interest savings accounts

Category: Savings
Author: Lieke Braadbaart
Date: 27/09/2018

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

They can be ideal if you have a significant savings pot, as it means 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 savings pots 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 this largely comes down to finding the most competitive rate and notice term – so you can change accounts without too much fuss if the rate were to drop.

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
Paragon Bank
Paragon Bank
120 Day Notice (Issue 10)
1.80%
  • Variable rate account
  • £500 minimum deposit
  • Further additions allowed
  • Withdrawals only permitted on 120 days' notice
  • Access via nominated current account
  • Internet-operated

In first place is this 120-day notice deal from Paragon Bank, which pays 1.80% AER (1.79% gross) over the year on a monthly basis, from an initial deposit of £500. Savers can make further additions at any time and request unlimited withdrawals, but the latter only after the required notice term is completed.

AER Details
OakNorth
OakNorth
120 Day Notice Deposit
1.79%
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals of at least £1,000 permitted on 120 days' notice
  • Access via nominated current account
  • Internet-operated
  • Interest must be compounded

OakNorth sits in second place with another account that pays 1.79% on 120 days' notice. This deal also allows additions and withdrawals, but the latter requires not only the full notice period but also a minimum of £1,000 to be withdrawn.

AER Details
Gatehouse Bank
Gatehouse Bank
120 Day Notice Account

1.78% (expected profit rate)
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • 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, with another 120-day notice deal. This one pays an expected profit rate of 1.78% (1.77% gross) and requires a minimum investment of £1,000. Further additions and withdrawals are both permitted, but the latter only if the full notice period is served. Due to its Sharia'a compliant nature, this may be a great choice for those looking to save ethically.

AER Details
OakNorth
OakNorth
90 Day Notice Deposit
1.77%
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals of at least £1,000 permitted on 90 days' notice
  • Access via nominated current account
  • Internet-operated
  • Interest must be compounded

OakNorth does it again with a second account making the chart, this time with a rate of 1.77%, which requires 90 days' notice. With all its other features matching the 120-day counterpart, this could be a great alternative for savers who don't want to give more than three months' notice to access their cash.

AER Details
Gatehouse Bank
Gatehouse Bank
95 Day Notice Account

1.77% (expected profit rate)
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted on 95 days' notice
  • Access via nominated account
  • Internet-operated
  • Interest must be paid away
  • Sharia'a compliant account

Gatehouse Bank also manages to get a second account in the charts, taking fifth place with a deal that pays an expected profit rate of 1.77% (1.76% gross) for those who are willing to give 95 days' notice. It requires a deposit of at least £1,000, with all its other features matching the higher-paying 120-day notice deal.

AER Details
Charter Savings Bank
Charter Savings Bank
95 Day Notice - Issue 19
1.75%
  • Variable rate account
  • £1,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted on a 95-day loss of interest
  • Access via nominated account
  • Internet-operated

Completing the top six is this account from Charter Savings Bank, which pays 1.75% AER (1.74% gross) from an initial investment of £1,000. As with the other accounts on this list, early access is not allowed, with 95 days' notice always being required on this online-only account.

Information and rates correct as at: 27.09.2018

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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