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Product focus: monthly interest accounts

Product focus: monthly interest accounts

Category: Savings

Updated: 25/01/2010
First Published: 01/09/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A number of savers are choosing monthly interest accounts, particularly if they need to use funds to supplement their income. A range of providers offer deals with monthly interest options, while others have deals which pay interest only on a monthly basis.

Here are the top three monthly interest deals currently available.

Sainsbury's Finance – Easy Saver

This new telephone based account from Sainsbury's Finance pays a rate of 2.80 per cent, so long as the account holder makes less than six withdrawals a year. For savers adhering to this condition and who would prefer interest paid on the deal's anniversary, the annual equivalent rate is guaranteed to be at least 2.00 per cent above Bank base rate for 12 months. If savers exceed five withdrawals, a rate of 0.50 per cent is paid. The number of withdrawals also determines the investment amounts for example deposits range from £1 to £500,000 for savers planning to make less than six withdrawals. Above this number, and the maximum investment increases to £2 million. All withdrawals must be made to a nominated account. No notice is required to access funds.

Buckinghamshire Building Society – Chiltern Gold Income Generator

The Chiltern Gold Income Generator account also pays 2.80 per cent. Savers can invest between £10,000 and £50,000. Savers can access their funds early, although this is subject to 180 days loss of interest. Funds must be new money to Buckinghamshire Building Society. The account can be operated in branch and by post and there are no age restrictions for savers.

West Bromwich Building Society – No Notice Saver Direct

This account pays a variable rate of 2.76 per cent, while savers who choose the yearly interest option will receive a rate of 2.80 per cent. Investments range from £1,000 to £1 million. No notice is required to access funds, although account holders must be aware that only three withdrawals are allowed during the account year (1st May to 30th April) by BACS payment to a nominated account. If more than three withdrawals are made, the account will pay a rate of 0.05 per cent until the account year begins again.

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.