Compare monthly interest accounts

Sorry we don't have any monthly interest paying accounts available at the moment. Why not check out some of our other deals below?

Easy access - ideal for those who need regular access - featured accounts -ordered by rate (AER)

    • Provider/Product name Telephone Saver (Issue 16)


      Telephone Saver (Issue 16)

    • Interest rate (AER) 1.35% Variable Includes Fixed bonus of 0.85% for 12 months
    • Min/Max opening amount £1,000 to £1,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    1.35% gross/AER which includes a fixed bonus of 0.85% for up to 12 months
    Applying online or by phone
    Interest paid annually as shown or monthly at a lower gross rate
    But be aware that
    If funds are withdrawn and the balance drops below £1,000 the interest rate will become 0.50% gross/AER variable for the period the balance remains below £1,000
    After 12 months, interest will revert to the variable interest rate without bonus, currently 0.50% gross/AER variable
    Available for those who are aged 50 or over
    • Provider/Product name eSaver Special


      eSaver Special

    • Interest rate (AER) 1.30% Variable
    • Min/Max opening amount £30,000 to £100,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    Tiered rates depending on your balance. 0.50% gross/AER variable £1-£999; 1.20% gross/AER variable £1,000-£14,999; £1.25% gross/AER variable £15,000-£29,999; 1.30% gross/AER variable £30,000-£100,000; 0.50% gross/AER variable £100,001+
    No withdrawal restrictions
    For new and existing customers
    But be aware that
    The rate you get depends on your balance
  1. Great for
    Managing your account online or in branch
    FSCS protected
    But be aware that
    Interest paid monthly

Monthly Income Guide

What is a monthly income account?

Monthly income accounts allow savers to put their capital in a bank or building society and use the regular interest payments to cover living expenses.

There are many different types of monthly income account – easy access, fixed-rate or notice accounts for example. But they all allow interest payments to be taken out, or diverted into another account, every month – even if access to the capital itself is limited.

The reason monthly income accounts have their own category is that some accounts only pay interest annually. In other cases, account providers may not allow interest to be taken out of the account on a regular basis, or may put limits on withdrawals.

Read more

What are the advantages?

Accounts that allow you to take interest out every month can in some cases pay better rates than other easy access accounts – in particular if you are willing to accept limits on withdrawals from the original capital you deposit in the account.

However there is no guarantee that such limits will give you a higher rate of interest, so ensure you shop around for the best rate and most suitable account when you are first looking for a home for your cash, and then on a regular basis after that.

What are the disadvantages?

If you are taking all the interest out of your account every month, then the capital you have deposited will gradually have its value eroded by inflation.

The higher the rate of inflation, the quicker this will happen.

Who do they suit?

Monthly income accounts are especially suitable for anyone who needs to live off the interest generated by their nest egg, or to use this money to supplement other income. This can be useful for retired people in particular.


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