Best rates - monthly interest accounts
We found 477 PRODUCTS in total, of which 92 are EASY TO OPEN
Market Harborough BS Fixed Term Bond 14 (31.07.2031)
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
RCI Bank UK 2 Year Fixed Term Savings Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
RCI Bank UK 3 Year Fixed Term Savings Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Trusted by moneyfactscompare.co.uk, Kellands are chartered financial planners that specialise in quality financial planning and investment advice. Learn more about speaking to Kellands for a one hour consultation free of charge. Min. £100k in savings & investments.
StreamBank Fixed Rate Account - Issue 2
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Aldermore 5 Year Fixed Rate Savings Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Recognise Bank 2 Year Fixed Rate Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Aldermore 3 Year Fixed Rate Savings Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Aldermore 4 Year Fixed Rate Savings Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
StreamBank Fixed Rate Account - Issue 41
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Aldermore 2 Year Fixed Rate Savings Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
*Data updated hourly, every day between 9am and 5pm.
Applicants must be a UK resident. Eligible UK deposits are protected up to £120,000 per person by the FSCS. Rates can change at any time - please check terms before applying. Some links (like ‘Go to Provider’ or ‘Speak to a Broker’) may earn us a commission. Use the heart icon to save favourites for 14 days (cookies required).
Who owns whom?
Find out which banks and savings account providers operate under which banking license with our who owns whom guide, helping savers work out to what degree their savings are protected by the FSCS.
A monthly interest savings account is any type of fixed or variable savings account that pays interest on a monthly basis.
The provider pays the interest due on a specified day each month. They may pay it back into your savings account (which means you can earn interest on top of the interest you’ve earned, known as compounding) or you may be able to have it paid into your current account or another account of your choice.
Some providers may automatically pay interest back into the savings account, unless you say otherwise. So, if you want the interest paid into a different account, make sure to tell the provider and give them the details of where you want it deposited.
Instead of monthly, other savings accounts may pay interest quarterly, yearly, on anniversary or on maturity of a fixed term, for example. Some providers allow you to choose how you have interest paid while others only pay interest in one way.
Compound interest is when you earn interest on the interest you’ve already earned, as well as on your original deposit.
For example, let’s say you deposit a £10,000 lump sum into a monthly interest account paying 4.00% gross interest.
To calculate your monthly return, you multiply £10,000 by (4.00% divided by 12), which means you would earn around £33.33 in interest for the first month.
If this is compounded (paid back into your account), in the second month you would earn 0.333% interest on £10,033.33 (your initial deposit plus the first month’s interest) and so on, meaning you would earn more and more interest each month, helping your savings to grow exponentially.
By contrast, if interest is paid out into your current account, you would continue to earn the same £33.33 each month on your £10,000 deposit.
See more in our guide to compound interest.
To estimate the amount you could earn in interest each month, divide the annual gross rate by 12. You can then multiply this amount by your balance to see the monthly interest.
If you don’t want to do the maths yourself, there are several online calculators that can help you to see how much interest you could receive on your savings. Bear in mind that any deposits, withdrawals, rate changes and the effect of compounding will affect the interest you earn.
Remember that the Annual Equivalent Rate (AER) assumes the interest on a monthly savings account is paid back into the account (or compounded). By contrast, the gross interest rate shows the return you can get on your savings without the effect of compounding, which is why the AER may be higher than the gross rate. Read more in our guide on AER vs gross rate.
Monthly interest is available on a wide range of different savings accounts and ISAs, including variable and fixed rate options. For example, you are likely to find easy access accounts, notice accounts, fixed bonds and a few regular savings accounts that can pay interest monthly, although not all providers will offer a monthly interest option.
You can view all the savings accounts that can pay interest monthly on our chart above or visit our monthly interest fixed bond chart if you want to view the accounts that pay a guaranteed monthly rate.
Alternatively, for those who want to earn tax-free interest, see our ISA charts to find ISAs that pay interest monthly. Simply choose a chart, click “Full search” and select “monthly” to filter the accounts by those that offer monthly interest.
Monthly interest accounts may be worth considering if:
However, keep in mind that if you withdraw interest each month, you’ll miss out on the effects of compounding, which could see you earn less than if you left the interest payments in the account.
The only difference between savings with monthly interest and annual interest savings accounts is the frequency with which interest is paid. The former pays interest each month while the latter pays it once a year.
When looking at monthly interest savings accounts, you may notice that the gross rate is slightly lower than the AER. This is because the AER assumes that interest is compounded (paid back into the savings account), whereas the gross interest rate does not.
By contrast, on savings accounts that pay interest yearly, the gross rate will be the same as the AER.
The AER helps you to compare accounts that pay interest in different ways on a like-for-like basis.
It’s not necessarily better to have interest paid monthly or annually as both options offer different benefits. How you choose to have interest paid is up to you and your individual requirements.
Regardless of whether you choose monthly or annual interest, if you choose to have it paid back into your savings account, you will earn interest on top of the interest already earned and so receive the benefit of compounding.
However, accounts that pay interest monthly are likely to be more appealing if you want to withdraw the money you earn on your savings at regular intervals and use it to supplement your income, for example. This could be particularly attractive if you have a fixed bond and want to guarantee that you will receive a fixed amount from your savings every month, otherwise you may not be able to access any of your savings (or the interest earned) for one year or more.
If you choose this option, bear in mind you would earn less interest overall than if it was paid back into the account or if interest was paid yearly.
If you don’t mind whether interest is paid monthly or not, it’s worth looking at all savings accounts, regardless of how often interest is paid. While monthly interest savings rates can be competitive, and may even be market-leading, this may not always be the case. There may be higher-paying accounts that pay interest yearly, for example, that could be more suitable than the best monthly interest account.
Once you’ve decided that you want your savings interest paid monthly, there are a number of other factors to consider to help you choose the right account for you, including:
Our chart above shows the best UK monthly interest savings accounts and the latest rates available, along with key account details to help you find a suitable deal. Using our ‘Full Search’ filter, you can tailor your monthly savings account comparisons according to your individual requirements and preferences.
While it can be tempting to go with a bank or building society you recognise, keep in mind the best monthly interest savings account for you may be available from a more unfamiliar brand. Challenger banks, for example, can offer higher returns as they often have lower running costs than traditional providers and offer enticing rates to attract business.
Yes, in some cases it is possible to change the frequency that interest is paid on your savings account and, depending on how your account is managed, you may be able to do this online. However, other providers may not allow you to choose a different option after selecting how you want interest to be paid.
Always check with your provider to see if you’re allowed to change the frequency of your interest payments.
It may be possible to change the account that your interest is paid into, if you initially choose to have interest paid back into your savings account but, after a while, you want to start receiving the interest payments into your current account, for example. However, this will depend on the terms of the provider so it’s always worth checking this when opening an account.
Traditional savings accounts, including those offering interest monthly, don’t typically charge any fees as standard.
However, some providers may charge a fee for extra features or apply a penalty for accessing funds before the end of a fixed term or notice period.
Furthermore, some savings accounts are only available if you have a linked current account with a provider, which itself may charge a monthly fee.
Most savings accounts require a minimum deposit to open before you can start receiving returns, but this isn’t tied to interest.
This being said, some accounts can pay different rates depending on the value of your pot and can sometimes require a minimum balance to maintain its headline rate.
As of the 2026/27 tax-year, basic-rate taxpayers can earn up to £1,000 in interest every year before having to pay tax as part of their Personal Savings Allowance (PSA). However, keep in mind this allowance falls to £500 if you’re a higher-rate taxpayer, with those in the additional-rate bracket not receiving any allowance at all. Check out our guide to find out more about how your savings are taxed.
With this in mind, a monthly paying account could make it easier to stay on top of your interest earnings to ensure you don’t breach your PSA; however, savers with larger sums may still find it more beneficial to opt for tax-free ISA returns instead.
If you choose to have interest paid out to a separate account each month, the provider should automatically deposit it into your nominated account. However, it’s worth doublechecking this with your provider.
Yes, some monthly interest savings accounts can be opened as a joint account, making it easier to save towards a shared savings goal.
As the interest would be paid from a shared balance, you could choose to put the monthly earnings towards joint expenses. If you live with the other account holder, this could include grocery shopping or paying bills, for example.
Our chart above can help you find the best monthly interest accounts UK providers offer. You can filter results by rate order to see which accounts currently pay the top returns, but bear in mind the accounts offering the highest rates may not necessarily be the best option for your situation and goals.
Yes, there’s no limit on the amount of savings accounts you can hold at once, including those that pay interest monthly.
The first way to maximise the interest earned on a monthly savings account is to choose an option that pays a competitive rate. Then, instead of having the interest paid out into a different account, you can get an even greater return on your money by keeping the interest invested in your savings account.
This means you will earn interest on any previous earnings, as well as the original deposit, which will accelerate the growth of your savings. This is known as compounding.
The more you deposit in a monthly interest savings account, the more interest you’ll earn. But no matter how large your deposit is, your returns ultimately depend on the interest rate offered by the account. It’s therefore important to shop around for the highest paying monthly savings accounts to ensure you get the best possible returns.
For example, paying £50,000 into an account offering 2.50% AER would see you earn approximately £104 after one month. However, depositing the same amount into an account paying a higher 4.00% AER would boost your returns to around £167 in the same period.
The maximum amount you can deposit into a monthly interest savings account depends on the terms of the provider. Some may allow you to deposit up to £100,000, while others may have a significantly higher limit of £1 million, for example.
You can find out more about an account’s maximum investment by selecting ‘product specification’ on each listing on our chart. However, bear in mind that, even if an account has a high maximum deposit limit, only up to £120,000 saved with a provider (or multiple providers that share a banking licence) will be protected under the Financial Services Compensation Scheme (FSCS).
Your money is as safe in a monthly interest account as in any other savings account. Under the Financial Services Compensation Scheme (FSCS), up to £120,000 that you have saved with each provider (or multiple providers that share a banking licence) is protected. This means you will be fully compensated (up to this limit) if your provider goes bust, for example, but any amount over this £120,000 limit is unlikely to be covered.
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