instant savings - monthly drawdown options

cjterry

I require an internet access savings account to make a single deposit and then draw down on each month. Am not sure whether to look for monthly or annual interest as I need to maximise this element due to the regular withdrawls. I currently looking at the Halifax websaver paying 5% AER annual as this can be easily set up to feed into the Halifax current account.

Any suggestions/advise would be greatly appreciated.

Many thanks

Afahmaep

cjterry wrote:

I require an internet access savings account to make a single deposit and then draw down on each month. Am not sure whether to look for monthly or annual interest as I need to maximise this element due to the regular withdrawls. I currently looking at the Halifax websaver paying 5% AER annual as this can be easily set up to feed into the Halifax current account.

Any suggestions/advise would be greatly appreciated.

Many thanks

Having had a Halifax Account for 10 plus years and a Nationwide Flex Account with linked E-saver currently paying 5.05% for 3 years I would give marks out of ten of 7/10 for Halifax and 8/10 to Nationwide. Both are good but there is room for improvement in both cases but Nationwide gets my vote.

Madiba_2

IceSave - 5.45 AER - Instant access and pays interest to your nominated current account (I think)

http://www.icesave.co.uk/

cjterry

Any comments on whether to opt for annual or monthly interest if the account will be drawndown on a monthly basis?

Thanks

Paul_Herring

cjterry wrote:

Any comments on whether to opt for annual or monthly interest if the account will be drawndown on a monthly basis?

My gut reaction is that it won't matter.

Normally, the monthly and yearly gross interest rates are matched so that the monthly payments compounded equal the yearly payments (any difference between the two due to tax taken off amounts to pence.) - this is why the monthly gross % is usually less than the yearly.

In both cases, interest is calculated on the daily balance.