Any good 'easy access' accounts that pay a decent level of monthly interest?

DireEmblem

Hi,

I have a couple of accounts in use already, but at the moment I dont think I am making the best use of my cash.

I have a couple of accounts with various companies that pay monthly interest - for example a holiday pot. Now with current rates so low, I actually think that inflation is offsetting the interest on these accounts to be -ev.

Now I still believe that its good to save up different pots for your 'rainy day fund', 'car maintenance', 'treats' and so on, but is there a better means of investment vehicle I could use for these?

All in all I still believe it is more beneficial to save like this, but I am unhappy with the return.

Thanks for the advice...

Consumerist

DireEmblem wrote: »

. . . but I am unhappy with the return.

Aren't we all.:(

Try the <MSE Savings page>.

You don't indicate what rates you are getting at the moment, which is not very helpful, but the Saffron BS, no bonus, 2.76% AER might suit you.

DireEmblem

Cheers Consumerist, its the bog standard 0.5% I am getting the now...

opinions4u

DireEmblem wrote: »

Cheers Consumerist, its the bog standard 0.5% I am getting the now...

Well read the link at the top of the page and get a lot more then!


http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Halifax and Santander are the high street names that pay the most. The AA, ING and Bank of Scotland are alternatives.

Consumerist

DireEmblem wrote: »

. . . its the bog standard 0.5% I am getting the now...

Don't forget the Saffron 2.76% AER is a variable-rate account so keep an eye on the rate then ditch and switch again if necessary. You don't want to end up in the same 0.5% boat again if you can help it.

Consumerist

opinions4u wrote: »

Halifax and Santander are the high street names that pay the most. . .

But I don't think they pay monthly interest.

opinions4u

Consumerist wrote: »

But I don't think they pay monthly interest.

Why do you need it on an easy access account though?

You can withdraw 1/12th of the annual interest each month if needed.

People get hung up on monthly interest. There really is no need.

Santander do at 2.96% gross.

https://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&cid=1237848019094&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

Gromitt

If you opt for monthly interest, the %age is typically lower to make up for the fact of compounding it. The AER will be the same however (assuming you don't touch any of the interest).

Like opinions4u says, if you calculate the monthly interest and withdraw 12 equal sums, you will find out at the end of the term that the amount you have left in the account is the same as the amount you invested. Obviously, if you put 3K in at 3%, you wouldn't get £90 of interest, as the whole amount wasn't in for the whole period, but you would get the same as the monthly interest illustration.

jkolch

I just got the new Santander eSaver. Really easy to set up because I already had another Santander account - do it online if you can because I made the mistake of doing it over the phone, which took about 40 minutes as they kept trying to sell me other products (as well as the required automated messages).

Lokolo_2

Consumerist wrote: »

But I don't think they pay monthly interest.

Santander does offer monthly interest on its eSaver, I have one and it is quite reasonable, I think 3.2% AER before tax. :T Unlike others on here I haven't had problems with Santander (yet!)

innovate

opinions4u wrote: »

You can withdraw 1/12th of the annual interest each month if needed.

People get hung up on monthly interest. There really is no need.

Some of the fixed term, and other better rate, accounts don't allow any, or no more than x, withdrawals. If you need some sort of monthly income from your savings, it's important there's a monthly interest option, together with automatic payment into another account.