Fixed Rate & Monthly Interest

Daisy_Bell

Martin keeps saying 'You won't usually get monthly interest on fixed rate savings accounts'. This is nonsense! (Sorry Martin ) But I keep seeing this statement on your Savings and Investing page and in the end just had to put the record straight. I've been investing in Fixed rate Savings Bonds for years now and since retiring seven years ago, have never had any trouble getting monthly interest from them. I've spread my savings in F/R accounts over several building societies and done quite nicely out of them. ( It's a problem finding decent rates now though, with some of my bonds starting to mature! )
Anyway, just thought I'd mention it!

Lokolo

He said you won't usually get it. Doesn't mean you won't get it. Just because you have an account which doesn, doesn't mean every other account does. You are most probably in the 1/10 fixed accounts that does.

juicyjude

I have two as well, one with Cheshire and one with Halifax. The Cheshire one particularly pays out quite well as I took it out at Christmas with a reasonable rate and pays out a nice income every month, the Halifax guaranteed reserve pays out monthly interest as well though not as good a rate as the Cheshire. The problem is what to do when they mature!

nilrem_2

Daisy_Bell wrote: »

I've been investing in Fixed rate Savings Bonds for years now and since retiring seven years ago, have never had any trouble getting monthly interest from them. I've spread my savings in F/R accounts over several building societies and done quite nicely out of them. ( It's a problem finding decent rates now though, with some of my bonds starting to mature! )
Anyway, just thought I'd mention it!

Same here I have been using fixed rates with monthly interest for at least tha last 10 years, never had a problem getting monthly TBH.

I also have the same problem as you, fixed rates maturing over the next few months and the rates are down by at least a half of what I have been getting.

Money_Grabber13579

Nationwide also give monthly interest. It seems from this discussion that actually quite a lot of bonds offer monthly interest!

PBA

You're probably reading a post from 6 months ago, when various cash strapped banks were offering fixed term accounts at up to 7%. These were only available for interest on maturity, as the banks in question had no means of paying that sort of interest in the short term. Now that the fixed rates available are relatively poor compared to instant access you find that you can get monthly interest again.

SnowMan

We need to put this thread into a practical "common sense" context.

The main point that Martin makes when mentioning monthly interest is, that if someone needs monthly interest and a fixed rate account does not offer a monthly interest option, then they can invest a slightly smaller amount in the fixed rate and the remainder un-invested serves as a substitute for that interest. An important point and I would not personally quibble with its wording like Daisy Bell, and if I was of the personality type to quibble I would at least mention the context of the original comment.

Whether fixed rates “usually” do or don’t offer monthly interest is of limited practical importance. You may be right that most fixed rate accounts offer this option now, I've no idea. But if you are going to invest in a fixed rate you look at the terms for your specific account to see if monthly interest is an option and if it isn’t, and you need the monthly interest, you consider the workaround.

I opened a fixed rate account yesterday that does NOT have a monthly interest option. So some do some don’t.

Daisy_Bell

Lokolo wrote: »

He said you won't usually get it. Doesn't mean you won't get it. Just because you have an account which doesn, doesn't mean every other account does. You are most probably in the 1/10 fixed accounts that does.

Err....If you had read my Post properly, you would have seen that I said I have Several fixed rate bonds -not just one! These I have had for many, many years - with various - largely mutual - I admit, Building Societies, and never had one which refused monthly interest.
You should take time to read Posts properly you know, before replying with a knee-jerk reaction!

nilrem_2

There are a plethora of Fixed rate accounts that pay monthly interest here -:

http://www.thisismoney.co.uk/saving-and-banking/best-savings-rate/article.html?in_article_id=394173&in_page_id=50