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)

  1. Market leading

    The best instant access interest rate!

    Great for
    Quick and simple online access
    Additional funds can be added to the account
    Choice between monthly or annual interest
    But be aware that
    You can only make up to 3 withdrawals per year (May-April) to get this rate
    0.75% penalty rate for over 3 withdrawals
    • Provider/Product name Internet Saver

      Tesco Bank

      Internet Saver

    • Interest rate (AER) 1.35% Variable Includes Fixed bonus of 0.60% for 12 months
    • Min/Max opening amount £1 to £1,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    1.35% Gross/AER variable (includes a fixed bonus of 0.60% for 12 months)
    Applying and managing your account online
    Opening your account with just £1
    But be aware that
    Rate includes a bonus, you may want to move your money at the end of this period
    • Provider/Product name Online Saver Issue 11

      Post Office

      Online Saver Issue 11

    • Interest rate (AER) 1.30% Variable Includes Fixed bonus of 0.40% for 12 months
    • Min/Max opening amount £1 to £2,000,000
    • Notice / Term Notice Period: none
    • Account type Easy Access Account
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    Having access to your savings 24/7 with free unlimited withdrawals
    Making deposits to your Online Saver whenever you like by logging on to the Post Office online banking service
    Control - pick from annual or monthly interest - annually in March or monthly on the first business day of each month. Rates vary depending on when you choose to receive interest
    But be aware that
    Online Saver is provided by Bank of Ireland UK
    Annual interest option shown includes a 0.40% gross fixed bonus for the first 12 months. After this time, the rate will revert to the underlying rate, currently 0.90% gross/AER variable

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.

Close

Cookie use

MoneySupermarket uses cookies, small text files which are downloaded to your computer's hard drive when you visit most websites.

Read more

Cookies are harmless files which can help improve the experience. Cookies allow websites to respond to you as an individual. The website can tailor its operations to your needs, likes and dislikes by gathering and remembering information about your preferences.

Read less | Cookie Policy

Close