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These savings accounts will pay interest to you on a monthly basis and can be useful if you want to supplement your regular pension or income.  Read our guide below for more information about monthly interest accounts.

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Investec Bank plc Logo
Investec Bank plc Notice Plus FSCS logo
FSCS logo
AER
1.80%
Account Type
Variable
Notice / Term
95 Day
Interest Paid
Monthly
Opening Account
Managing Account
Go To Provider's Site
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 1.79% paid at £10K
AER 1.80% paid at £10K
Interest Paid Monthly
Interest payment Interest can be paid away or compounded
Min Opening Amount £10,000
Max Investment £1,000,000
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
No earlier access.
Further Additions Allowed

Information

Min Age 16
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

N/A

Additional Information

Loyalty rate of 0.05% added if notice is not placed for 90 days.
United Bank UK Logo
United Bank UK 5 Year Fixed Term Deposit FSCS logo
FSCS logo
AER
1.75%
Account Type
Fixed
Notice / Term
5 Year Bond
Interest Paid
Monthly
Opening Account
Managing Account
Go To Provider's Site
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 1.74% paid at £2K
AER 1.75% paid at £2K
Interest Paid Monthly
Interest payment Interest must be paid away
Min Opening Amount £2,000
Max Investment £1,000,000
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
Earlier access at banks discretion subject to 365 day loss of interest.
Further Additions Allowed
At the end of the fixed term
Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

Information

Min Age 18
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

N/A

Additional Information

N/A
Investec Bank plc Logo
Investec Bank plc Notice Plus FSCS logo
FSCS logo
AER
1.50%
Account Type
Variable
Notice / Term
65 Day
Interest Paid
Monthly
Opening Account
Managing Account
Go To Provider's Site
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 1.49% paid at £10K
AER 1.50% paid at £10K
Interest Paid Monthly
Interest payment Interest can be paid away or compounded
Min Opening Amount £10,000
Max Investment £1,000,000
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
No earlier access.
Further Additions Allowed

Information

Min Age 16
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

N/A

Additional Information

Loyalty rate of 0.05% added if notice is not placed for 90 days.
RCI Bank UK Logo
RCI Bank UK Freedom Savings Account FSCS logo
FSCS logo
AER
1.42%
Account Type
Variable
Notice / Term
None
Interest Paid
Monthly
Opening Account
Managing Account
Go To Provider's Site
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 1.41% paid at £100
AER 1.42% paid at £100
Interest Paid Monthly
Interest payment Interest must be compounded
Min Opening Amount £100
Max Investment £1,000,000
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
N/A
Further Additions Allowed

Information

Min Age 18
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

N/A

Additional Information

N/A
Investec Bank plc Logo
Investec Bank plc Notice Plus FSCS logo
FSCS logo
AER
1.40%
Account Type
Variable
Notice / Term
35 Day
Interest Paid
Monthly
Opening Account
Managing Account
Go To Provider's Site
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 1.39% paid at £10K
AER 1.40% paid at £10K
Interest Paid Monthly
Interest payment Interest can be paid away or compounded
Min Opening Amount £10,000
Max Investment £1,000,000
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
No earlier access.
Further Additions Allowed

Information

Min Age 16
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

N/A

Additional Information

Loyalty rate of 0.05% added if notice is not placed for 90 days.
Secure Trust Bank Logo
Secure Trust Bank 7 Year Fixed Rate Bond FSCS logo
FSCS logo
AER
2.70%
Account Type
Fixed
Notice / Term
17.06.26
Interest Paid
Monthly
Opening Account
Managing Account
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.67% paid at £1K
AER 2.70% paid at £1K
Interest Paid Monthly
Interest payment Interest can be paid away or compounded
Min Opening Amount £1,000
Max Investment £1,000,000
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
N/A
Further Additions Allowed
At the end of the fixed term
Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

Information

Min Age 18
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

N/A

Additional Information

N/A
Secure Trust Bank Logo
Secure Trust Bank 5 Year Fixed Rate Bond FSCS logo
FSCS logo
AER
2.60%
Account Type
Fixed
Notice / Term
17.06.24
Interest Paid
Monthly
Opening Account
Managing Account
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.57% paid at £1K
AER 2.60% paid at £1K
Interest Paid Monthly
Interest payment Interest can be paid away or compounded
Min Opening Amount £1,000
Max Investment £1,000,000
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
N/A
Further Additions Allowed
At the end of the fixed term
Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

Information

Min Age 18
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

N/A

Additional Information

N/A
ICICI Bank UK Logo
ICICI Bank UK HiSAVE Fixed Rate Account FSCS logo
FSCS logo
AER
2.50%
Account Type
Fixed
Notice / Term
5 Year Bond
Interest Paid
Monthly
Opening Account
Managing Account
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.47% paid at £1K
AER 2.50% paid at £1K
Interest Paid Monthly
Interest payment Interest must be paid away
Min Opening Amount £1,000
Max Investment £0
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
N/A
Further Additions Allowed
At the end of the fixed term
Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

Information

Min Age 18
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

Linked Product (Non-Funded): HiSAVE Savings account automatically opened for administration of maturity proceeds

Additional Information

N/A
ICICI Bank UK Logo
ICICI Bank UK SuperSaver Bond FSCS logo
FSCS logo
AER
2.50%
Account Type
Fixed
Notice / Term
5 Year Bond
Interest Paid
Monthly
Opening Account
Managing Account
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.47% paid at £1K
AER 2.50% paid at £1K
Interest Paid Monthly
Interest payment Interest must be paid away
Min Opening Amount £1,000
Max Investment £0
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
N/A
Further Additions Allowed
At the end of the fixed term
Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

Information

Min Age 18
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

Linked Product (Non-Funded): New and existing HomeVantage Current Account customers

Additional Information

N/A
Ikano Bank Logo
Ikano Bank Fixed 5 Year Saver Depositor Protection logo
Depositor Protection logo
AER
2.50%
Account Type
Fixed
Notice / Term
5 Year Bond
Interest Paid
Monthly
Opening Account
Managing Account
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.47% paid at £1K
AER 2.50% paid at £1K
Interest Paid Monthly
Interest payment Interest can be paid away or compounded
Min Opening Amount £1,000
Max Investment £1,000,000
Introductory bonus N/A

Access

Withdrawals Allowed
Early Access Allowed
Access Note
N/A
Further Additions Allowed
At the end of the fixed term
Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

Information

Min Age 18
Max Age 0
Taxation
Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

Opening Restrictions

N/A

Additional Information

N/A

Select a Savings Account

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per person per institution.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing

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Still unsure?

Read our Savings and ISA guides
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The difference between a savings account and a savings bond

The difference between a savings account and a savings bond.

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How are my savings taxed?

How are my savings taxed?

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How to get the best return from your savings

How to get the best return from your savings.

Read More

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Monthly Interest Accounts Guide

Leanne Macardle

Leanne Macardle

Editor
Published: 30/01/2019

At a glance

  • A monthly interest savings account pays you interest on a monthly basis, which can be paid into another account or added to the savings within the account depending on the terms of the account.
  • There are a number of savings accounts that pay monthly interest, these include easy access accounts, cash ISAs, fixed rate ISAs, notice accounts, fixed rate bonds, Help to Buy ISAs and offshore savings.
  • Normally the best rates are on fixed rate bonds, but these usually don’t allow you to withdraw your money before the end of the fixed period.

Lots of different types of savings accounts pay interest monthly; including Fixed Rate Bonds, Easy Access, Notice and Cash ISAs. As well as this, other accounts may also pay monthly interest so it is important to check in the account details to see when interest will be paid. Monthly interest savings allow you to earn interest on your savings that can then be paid either to you as an income or added to your savings balance. Taking interest as an income is particularly appealing to those with large savings in a fixed-rate account, as it would provide them monthly payments from the account without incurring a penalty that they may otherwise get for withdrawing money.

How do monthly interest savings accounts work?

Earning monthly interest on your savings means exactly that. Each month the interest is calculated on your balance and then the interest is paid either directly to you or added to the balance. You will find a range of account types that offer monthly interest and a choice of fixed and variable rates. If you want to save tax-free then you may want to open or transfer to a cash ISA paying monthly interest.

Why should I save into a monthly interest savings account?

If you would like to receive a regular income from your savings then an account that pays monthly interest does exactly that. Most monthly interest savings accounts offer the option to either have your interest kept in the account (where it then benefits from compound interest and helps to grow your savings pot), or to have it paid into a separate account, such as your bank account where you can make use of it in your day-to-day finances.

Which savings accounts pay monthly interest?

Not all savings accounts and cash ISAs offer the option to pay you monthly interest so it is important that you check the account’s information to ensure that the one you choose allows this. You can earn monthly interest on:

  • Easy access accounts
  • Cash ISAs
  • Fixed-rate ISAs
  • Notice accounts
  • Fixed rate bonds
  • Help to Buy ISAs (these are for first time buyers only)
  • Offshore savings

Where are the best monthly interest savings accounts?

The best monthly interesting savings accounts are constantly changing as saving providers bring out new products and change rates. As well as this the best account for you will depend on your personal circumstances and not just on the best rate available, for example some accounts will require a high minimum deposit while others might not allow further deposits made to the account once it has been opened.

What should I check before opening an account paying monthly interest?

Before opening the account make sure you are happy with the terms of the account and the ways you will be able to manage the account. As well as this, some monthly interest accounts may only allow the interest to be paid to a separate account so watch out for this.

Can I have my interest paid into a different account?

Some accounts will let you choose to pay your interest into an account held at a different bank or Building Society, you will need to check the account details to ensure that the account you are considering allows this.

How to get the best monthly interest savings rate?

Normally the best rates are available on Fixed Rate Bonds but be aware that with these accounts you will not be able to gain access to your savings during the fixed period so only choose these accounts if you are happy to lock your money away for a while.

What are the differences between monthly interest and annual interest savings options?

Sometimes interest rates for the monthly interest option may differ to that of annual option and, again, always make sure you check the account details to see if there is a difference and what this will be. Also keep in mind that monthly interest allows you to earn your interest more frequently than annual interest options, but this will result in not getting the lump sum of interest that you would on annual accounts.

Will savings tax be different between monthly and annual interest options?

No both options have the same rules for savings tax.

What else to check before opening a monthly interest account.

Make sure you explore using your cash ISA allowance (deposit up to £20,000 in 2019/20). Savings in a cash ISA can earn tax-free interest, so it can really boost your monthly income if you pay tax on your savings interest. Basic rate taxpayers can earn up £1,000 tax-free interest on savings held outside of an ISA, but all ISA interest is tax-free.

Pros and cons of monthly interest accounts

  • Monthly interest can be moved into another account which can provide you with access to some money from a fixed-rate savings account
  • A wide range of savings providers offer monthly interest accounts making it easier for savers to find a competitive rate
  • The interest gained monthly might be lower than that gained annually on the same account

Moneyfacts tip

Moneyfacts tip Leanne Macardle

If you think you will need to make withdrawals from your savings accounts makes sure you check what the account’s withdrawal terms are as some may not allow withdrawals or charge a penalty to do so.

pink piggy bank

At a glance

  • A monthly interest savings account pays you interest on a monthly basis, which can be paid into another account or added to the savings within the account depending on the terms of the account.
  • There are a number of savings accounts that pay monthly interest, these include easy access accounts, cash ISAs, fixed rate ISAs, notice accounts, fixed rate bonds, Help to Buy ISAs and offshore savings.
  • Normally the best rates are on fixed rate bonds, but these usually don’t allow you to withdraw your money before the end of the fixed period.
Best Monthly Interest Accounts
Provider AER Account Type Notice / Term Min Investment
Secure Trust Bank Logo Secure Trust Bank 7 Year Fixed Rate Bond 2.70% Fixed 17.06.26 £1,000
Secure Trust Bank Logo Secure Trust Bank 5 Year Fixed Rate Bond 2.60% Fixed 17.06.24 £1,000
Secure Trust Bank Logo Secure Trust Bank 4 Year Fixed Rate Bond 2.50% Fixed 16.06.23 £1,000
ICICI Bank UK Logo ICICI Bank UK HiSAVE Fixed Rate Account 2.50% Fixed 5 Year Bond £1,000

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