Another Savings Question

xyz123

Hye

I have a question regarding making some saving. Please help me. I have gone through all guides on this website and other websites as well as using the comparision tables. But i am still undecided..

We have about £20k to invest, which is currently siting in my natwest e-savings account paying something like 4.3% interest. We need instant access to this money as we may buy a house during next 4-8 months.

My criteria is that the bank should be sending quarterly statements rather than yearly statements or only offering internet based statments.

My First question is: Is it true that the monthly paid interest account is better than annually paid interest account. I cant find an answer to this. However the fact that all top savings tables (including one on MSE) seem to ignore this criteria and simply list accounts by interest rate, it points to me that it doesnt make a difference as far as total savings over a period are concerned.

Secondly does anyone have any decent high savings account with any of the banks which offer quarterly statements via post.

Many Many Thanks
J

isofa

Why the necessity of quarterly statements? With online accounts you can read and print off statements whenever you like.

If you want top rated instant access, Kaupthing Edge is hard to beat at 6.55% with no catches. But it's online, and no paper statements! (Paying £450 per year more than your 4.3% account for 20K over 12 months!) Many more top accounts listed at Moneyfacts.

There is no difference to having monthly interest over yearly interest, you'll get the same over 12 months, monthly is at lower rate as it's paid monthly and compounded to match the higher yearly or AER rate. When comparing interest rates between accounts, only compare the AER (annual equivalent rate).

People opt for monthly who like to see their savings grow each month or perhaps withdraw monthly interest to spend.

xyz123

isofa wrote: »

Why the necessity of quarterly statements? With online accounts you can read and print off statements whenever you like.

There is no difference to having monthly interest over yearly interest, you'll get the same over 12 months, monthly is at lower rate as it's paid monthly and compounded to match the higher yearly or AER rate. When comparing interest rates between accounts, only compare the AER (annual equivalent rate).

Many Thanks for your quick reply. The reason for having statements by post is that i am a foreign national, living and working in the UK, so when i want to go on a holiday in Europe or somewhere, i need to obtain Visa. In order to get the visa or when applying one for my parents who may want to come and visit me, i am required to give proof to home office / embassy of the country i want to visit to show that i have sufficient funds in m accounts and only payslips are not enough.

Thanks for clarifying my query regarding monthly or annnual interest.

cheers
J