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Compare our best monthly interest savings account

You can get your interest paid monthly on the monthly interest accounts, to give you some extra income each month.

  • View terms, rates and products at a glance
  • Our service is simple, reliable and is at no charge
  • Savings accounts are protected by the Financial Services Compensation Scheme (FSCS)¹

Compare monthly interest savings accounts from leading providers

Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

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How to compare monthly interest savings accounts

1

Decide your savings goals

Decide on your deposit amount. How much have you set aside to open a savings account?The opening sum requirement will vary depending on the provider.

2

Compare your options

Have a look through the options to find the best monthly interest savings account, importantly terms can vary between providers, so check any conditions attached to the the account.

3

Apply and save

You may be able to get a higher interest savings account by applying online and some providers only ever operate digitally. Once you've decided on the provider you want, simply apply.

Monthly interest savings account deals

35 results found, sorted by highest interest rate. How we order our comparisons. Commission earned affects the table's sort order.
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Skipton 5 Year e-Bond Issue 184
Account type
Fixed rate bond
Term
5 years
Open with
£500
Interest rate
2.3% AER fixed
Protection scheme
FSCS
Skipton 5 Year e-Bond Issue 184
Interest is paid on the anniversary of account opening and on maturity. Withdrawals not allowed. Check restrictions on paying in.
No withdrawal or closure permitted during the term of the account.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£5002.3%2.3%2.3%2.3%
Eligibility
Maximum Initial Deposit£1,000,000
Minimum Initial Deposit£500
Minimum Age16 years
Permanent UK Resident
£25 bonus offer. Claim via email, terms apply
Raisin UK - QIB UK Bank - 2 Year Fixed Term Deposit
Account type
Fixed rate bond
Term
24 months
Open with
£1,000
Interest rate
2.3% EPR (gross p.a.)
Protection scheme
FSCS
Raisin UK - QIB UK Bank - 2 Year Fixed Term Deposit
£25 bonus when you deposit £10,000 or more into your first savings account with Raisin UK. Term length must be min 6 months, or for an easy access account your balance must remain at or above £10,000 for the first 6 months. Withdrawal conditions apply.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£1,0002.3%2.3%2.3%2.3%
Eligibility
Minimum Initial Deposit£1,000
Minimum Age18 years
Permanent UK Resident
Young girl watching money pot

What is a monthly interest account?

A monthly interest savings account does exactly what it says on the tin. It's a savings account which pays you your interest monthly.

Each month, the interest is calculated on your balance before being paid to you.

You can take what you earn each month.

Some savings accounts pay interest annually, so you have to wait a long time to receive your interest.


Why save in a monthly interest account?

You can benefit from a regular income by choosing to have your interest paid monthly.

This can be paid into your monthly interest savings account, or you can have it paid into another bank account. The arrangement you have will depend on which monthly savings interest account you choose.

People with a large amount of savings will benefit most from having a monthly income from interest. They'll get the biggest payments. By having the interest paid into another account, it means they can access money without having to pay a penalty for withdrawing funds.

Sometimes, these accounts also appeal to people who want to use their savings interest to supplement their pension. It can be handy to have a monthly interest payment, without actually needing to delve into your savings.

It's important to note that not all savings accounts pay out in this way, but monthly savings accounts are not the only type of account that does.

Which accounts can offer monthly interest?

You can have your interest paid to you monthly from a wide variety of savings accounts, including:

  • Fixed rate bonds: Tie your money up for a set term with a fixed interest rate. These usually have the best interest rates, but you can't access your money until the fixed term ends, so they don't work for everyone

  • Fixed rate cash ISAs: These are the same as fixed bonds but you save using your tax-free ISA allowance

  • Lifetime ISA: Allows you save up to £4,000 a year towards your first home or for retirement. This is then topped up by a 25% government bonus every year

  • Notice accounts: These require notice before withdrawing your funds

  • Offshore savings accounts: You save your money in an account abroad

  • Cash ISAs: You earn tax-free interest and can access your money easily but interest rates aren't usually high.

Make sure you know what level of access you need to your money you want before choosing an account. Many will tie your money up for a set term, which won't work for everyone.

Monthly interest savings account vs annual interest savings account

Monthly interest

Monthly interest is the best option when you want to earn an extra monthly income from the interest on your savings.


Annual interest savings

If you don't need your interest to be paid each month, you could earn more with an annually paid savings account.

Make sure you shop around for the best type of savings account for your needs.

Florence Codjoequotation mark
If you want an account that can bring in regular streams of money, a monthly interest savings account might be a good option.
Florence Codjoe, Personal Finance Editor

How to find the best monthly interest savings account

Banks and building societies change their products and rates all the time. This means the best monthly interest account one day may not be the best one the next day.

It's also important to remember that the best monthly interest savings account for you personally will depend on your situation. Some accounts might have restrictions that don't appeal to you. Some require a large minimum deposit, while others don't allow ongoing deposits. So you'll need to think about how you plan to use the account before choosing one.

Use our table to find and compare monthly interest savings accounts that are currently available.

What's compounded interest?

Compound interest is when you earn interest on your original savings combined with your accrued interest. You don't get to take advantage of this if you have your savings paid into a separate account.

Our table shows the AER interest rate, which tells you exactly how much interest you earn each year as opposed to compounded interest.

What are the pros and cons of monthly interest savings accounts?

  • You can benefit from a monthly income
  • You can have the interest paid into a separate bank account
  • You can still access some funds even though it's a fixed-rate savings account
  • There are lots of monthly interest savings accounts available
  • You should find competitive rates when it comes to choosing an account
  • The rates aren't usually as good as they might be with an annual interest savings account
  • You're likely to earn more with the same account if it was an annual one
  • You don't get the benefits of compounding

Is my money safe in a monthly interest savings account?

Yes. If you're with a UK-regulated bank, the Financial Services Compensation Scheme (FSCS) will protect your money up to £85,000. The protection would be beneficial if the bank you are with collapsed.

Monthly interest savings account FAQs

About our monthly interest savings accounts comparison

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Why compare savings accounts deals with money.co.uk?

Comparing savings accounts could save you money. Our multiple award-winning comparison service makes sure you get the lowest fees and rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

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Last updated: 05 May, 2022