Interest paid monthly?

CurryKing_2

Are there any savings accounts out there that pay interest monthly? i.e it compound on the previous months interest?

I only ask theres loads of loans where the interest is calculated monthly (or even daily!) but not savings?

Just thought i'd raise it for discussion

Neil

johnllew

Here's a list on savings a/cs paying monthly interest from Money£acts.

CurryKing_2

Cheers John - That Bradford and Bingley looks pretty good to me.

Because the interest is paid monthly doesnt that mean the rate is better than an account that pays annually as the interest is calculated on the previous months balance + previous months interest???

Neil

Reaper

Because the interest is paid monthly doesnt that mean the rate is better than an account that pays annually

Not really. Monthly accounts usually have their interest rate reduced to match. Look at the commonly quoted %AER - it takes into account compounding over the year. Use that to compare accounts which pay monthly/yearly.

You will see the AER rate quoted on that link.