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. Great for
    Unlimited payments and withdrawals with no penalties
    7 day service and choice of monthly or annual interest
    Part of Renault’s global banking group
    But be aware that
    RCI is part of a French group, the first 100,000 euro of savers' money - equivalent to £71,391 (correct as of 12.08.2015) - is protected by the French Deposit Scheme, rather than the usual £85,000 protection currently offered by UK-owned banks
  2. Great for
    1.60% gross/AER variable which includes a fixed bonus of 1.35% for up to 12 months
    Opening and managing your account online
    Interest paid annually
    But be aware that
    After 12 months, interest will revert to the variable interest rate without bonus, currently 0.25% gross/AER variable
    Minimum opening deposit must be for at least £1,000. Your balance can drop below £1,000. If it does the rate will become 0.25% gross/AER variable for the period the balance remains below £1,000
    Must be 18 or above to be eligible
  3. Great for
    Online access
    Withdrawals are permitted without notice
    Easy access to savings
    But be aware that
    Joint accounts are not permitted
    This account is limited to one account per customer
    Maximum investment of £50,000

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.


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