cash stack icon

Best Monthly Interest Savings Account

The comparison chart below shows the best interest rates currently available for Monthly Interest Accounts in the UK. You can personalise the data, using the filters at the top of the chart, to specify the size of your investment amount and whether you have a lump sum to invest, or if you want to make a monthly deposit.

View the chart below to compare the best Monthly Interest Account rates today.

Advertisement

Best rates - monthly interest accounts

Best rates - monthly interest accounts

Press to increase amount Press to decrease amount

We found 342 products in total, of which 61 have links to providers.

Press for help tip

Selecting ‘Provider Links First’ brings all products that you can apply for directly via Moneyfacts to the top of the chart in rate order. Products that do not have an ‘Go To Provider's Site’ button will appear below, again in rate order. Selecting ‘Rate’ will change the chart to list all products in rate order. Products that have ‘Go To Provider's Site’ links will still be in the list but in rate position.

We are searching our databases for your products...

  • Investec Bank plc 90-Day Notice Saver
    AER
    5.25%
    Account Type
    Variable
    Notice
    90 Day
    Interest Paid
    Monthly
    Go To Provider's Site
  • OakNorth Bank 95 Day Notice Base Rate Tracker Account - Issue 1
    AER
    5.20%
    Account Type
    Variable
    Notice
    95 Day
    Interest Paid
    Monthly
    Go To Provider's Site
  • Charter Savings Bank 1 Year Fixed Rate Bond
    AER
    5.13%
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • StreamBank 90 Day Notice Account - Issue 5
    AER
    5.05%
    Account Type
    Variable
    Notice
    90 Day
    Interest Paid
    Monthly
    Go To Provider's Site
  • StreamBank Fixed Rate Account - Issue 14
    AER
    5.05%
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Aldermore 9 Month Fixed Rate Savings Account
    AER
    5.00%
    Account Type
    Fixed
    Term
    9 Month Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Market Harborough BS 180 Day Notice Account
    AER
    5.00%
    Account Type
    Variable
    Notice
    180 Day
    Interest Paid
    Monthly
    Go To Provider's Site
  • Paragon Bank 1 Year Fixed Rate Savings Account
    AER
    5.00%
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • RCI Bank UK 2 Year Fixed Term Savings Account
    AER
    5.00%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • RCI Bank UK 95 Day Notice Savings Account
    AER
    4.95%
    Account Type
    Variable
    Notice
    95 Day
    Interest Paid
    Monthly
    Go To Provider's Site
Depositor Protection

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.

Disclaimer

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

Provider Links

‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.

Monthly interest accounts guide

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.

What is a monthly savings account?

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.

 

Receive the latest news, straight to your inbox

All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.

Send me Weekend Moneyfactscompare, Savers Friend, Companies Friend and selected third-party offers.

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 accounts offer to either have your interest kept in the account (where it then benefits from compound interest) or to have it paid into a separate account.

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:

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, or alternatively only back into the account itself, so make sure the account allows you to fulfil your objectives.

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.

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. Where the interest is compounded, you will probably find that the Annual Equivalent Rate (AER) is the same as an annual interest version of the same account, as the actual amount of interest earned is the same over the year.

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.

Where are the best monthly interest savings accounts?

The best monthly interest 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.

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
Image of Ashley Seager

Ashley Seager

Digital Marketing Manager

Moneyfactscompare guides

More guides
guides icon
What is a Trust Account?

A trust is where money or other assets are held on behalf of somebody else (known as a beneficiary). The beneficiary could be a child, an adult who lacks capacity to manage their own affairs or an organisation. Read our guide to find out more about trust accounts.

A trust is where money or other assets are held on behalf of somebody else. Our guide explains more.

Read More
guides icon
How much can I give as a cash gift and how is tax affected?

There are many reasons why you may want to give a cash gift to your loved ones. We explain the implications from a tax perspective.

There are many reasons why you may want to give a cash gift to your loved ones. We explain the implications from a tax perspective.

Read More
guides icon
What is Shari’ah-compliant banking and how does it affect your finances?

From expected profit rate to home purchase plans, there are a number of terms you will have to know if you are to consider a provider which complies with Islamic banking principles. Also known as Shari’ah-compliant banking, we explain below how this works.

From expected profit rate to home purchase plans, there are a number of terms to consider when using an Islamic banking provider.

Read More

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.