Best fixed rate monthly with early access, CapitalOne?

dougz_2

I am thinking now seems a good time to lock some savings in to a fixed interest rate for 1 or 2 years, but two key requirements are that I want monthly interest, and also, to know I have an option to pull out if my situation should change.

The main comparison sites do not seem to be geared to search for early access, however the best I have come across so far is at capitalonesavings who offer 1 year 6.75% 60 day penalty, or 2 year 6.6% 90 day penalty, see http://www.capitalonesavings.co.uk/FixedRateBond.asp

Any better ideas? Or do people think savings rates could still go up more?

YorkshireBoy

How important is the monthly interest?

If there's some room for manoeuvre you could lock in to 6.30% with Egg for 12 months, and this account allows withdrawals without penalty.

http://new.egg.com/visitor/0,,3_94368--View_2081,00.html

If you really do need monthly interest (perhaps to subsidise your income, and not just so you can 'see' your money grow), then just withdraw an amount equivalent to the interest accrued each month.

dougz_2

YorkshireBoy wrote: »

How important is the monthly interest?

Mainly to earn half the first years interest this tax year, where it will be unlikely to put me over tax threshold, rather than getting all interest lumped into next year, or beyond, when it might. If it wasn't for that I would go for Kaupthings 7.15%. Unless anyone knows another way to deal with this issue?

Eventually the capital will probably be used in buying a property, which is looking unlikely to be soon, so I can live with a reasonable early access penalty if it gets me a significantly higher rate.