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6 of the best monthly interest savings accounts

6 of the best monthly interest savings accounts

Category: Savings
26/07/2018

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

They 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 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 most of this 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
OakNorth
OakNorth
120 Day Notice Deposit
Go to Site
1.74%
  • 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

In first place is this 120-day notice deal from OakNorth, which pays 1.74% on a monthly basis from an initial deposit of £1,000. Savers can make further additions at any time, and can request unlimited withdrawals of at least £1,000 – provided the notice period is observed.

AER Details
OakNorth
OakNorth
90 Day Notice Deposit
Go to Site
1.69%
  • 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 in the chart; this time it's the 90-day version of its notice offering, which pays a rate of 1.69% on a monthly basis. Its other features match the number one notice account, giving savers a choice between two market-leading rates, depending on how much notice they're willing to give.

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

Completing the top three is Paragon Bank, with another 120-day notice deal. This one pays 1.66% AER (1.65% gross) and requires a minimum investment of £500. Further additions and withdrawals are both permitted, but the latter only if the full notice period is served.

AER Details
Gatehouse Bank
Gatehouse Bank
120 Day Notice Account
1.53%
  • 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

Next up is this 120-day notice deal from Gatehouse Bank. With an expected profit rate of 1.53% AER (1.52% gross) on a minimum of £1,000, this is a truly income-generating product, as interest has to be removed from the savings account every month. Savers can make further additions at will, as well as unlimited withdrawals provided the required notice period is given.

AER Details
Wyelands Bank
Wyelands Bank
95 Day Notice Account
Go to Site
1.52%
  • Variable rate account
  • £5,000 minimum deposit
  • Further additions allowed
  • Withdrawals permitted on 95 days' notice
  • Access via nominated current account
  • Internet-operated
  • Interest must be compounded

Wyelands Bank takes fifth place with a deal that pays 1.52% AER (1.51% gross) on a monthly basis to those who invest at least £5,000. It allows access on 95 days' notice, while additions can be made at any time through a nominated account.

AER Details
Hinckley and Rugby BS
Hinckley & Rugby BS
Rainy Day 120 Day Notice Account
1.50%
  • Variable rate account
  • £5,000 minimum deposit
  • Further additions allowed
  • Withdrawals of at least £250 permitted by cheque on 120 days' notice or a 120-day loss of interest
  • Can be opened and operated in branch and by post
  • Interest must be compounded

Just squeezing into the top six is this account from Hinckley & Rugby BS, which pays 1.50% AER (1.49% gross) on a monthly basis from an initial investment of £5,000. It has the distinction of being the only account in this list that cannot be managed online and allows early access, but only on a 120-day interest penalty.

Information and rates correct as at: 26.07.2018

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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