Best savings account paying MONTHLY interest

Rekhmire

Hi everyone.

My Lloyds account has come to the end of it's bonus period and my interest has gone down from £40 a month to just £5 a month. I'm having to transfer money out of this account each month to pay for my motorbike (on 0% finance), so as the money is reducing each month I need an account which pays the interest monthly and not just on what's in at the end of the year.

So I need unlimited withdrawals and internet access for ease of use.

The AA account looks like a good saver and should pay me over £400 on the balance after 12 months but, it's not paid monthly. I'm putting the interest saved each month into my ISA, so it doesn't just get spent.

Can anyone suggest the best account for me at the moment?

Thanks.

apt

You seem to misunderstand the difference between annual and monthly interest. Monthly interest is paid out once a month, annual interest once a year, but in both cases is calculated on daily balances, not on what is left at the end of the month or year.

xylophone

http://moneyfacts.co.uk/savings/high-interest-savings-account/
might be something here.

innovate

Rekhmire wrote: »

My Lloyds account has come to the end

Since you are with Lloyds already: have you got Vantage accounts? One of the best paying accounts available.

jimjames

Nationwide Flexdirect

eskbanker

jimjames wrote: »

Nationwide Flexdirect

If OP would be getting over £400 annual interest from an AA account then their pot must be in £25K+ territory, so FlexDirect's £2,500 limit won't make much of an impression on that total! Still potentially worth doing, but only alongside other options for the rest....