Monthly Interest Savings Account paid to external account?

Bobblehat

Any recommendations for an Instant/Easy Access Savings account that pays monthly interest to an external (nominated) account? I have a Charter Savings Bank EA that pays 1.39% to an external current account, but is there any better without maybe going to a fixed term account?

I miss the ability to set up standing orders (that were available a few years ago) to pay the interest to other accounts to act as income! There seems to be scant information about this type of account on the Banking/Savings pages of MSE.

colsten

You get 1.5% AER for 12 months in a Marcus Instant Access account.

Or 1.5% AER at KRBS instant access if you have more than £1,000 in the account.

They both can pay interest monthly, and I think (not sure) both offer the option to pay your interest into your linked current account.

You'd obviously get a higher interest rate if you can lock your money away for a year or two. Some of those accounts also pay monthly interest. https://www.lovemoney.com/bestbuys/50570/the-best-savings-accounts-for-monthly-interest

What is the purpose of skimming off the interest? If you need the monthly income, why don't you just keep the annual interest amount in an interest-paying current account e.g. TSB) and withdraw it from there? Then put the rest of the money into a 1-year (or longer) bond?

Bobblehat wrote: »

There seems to be scant information about this type of account on the Banking/Savings pages of MSE.

That's most likely due to the fact that income from savings accounts is now so miserable that not many people bother with monthly interest.

Bobblehat

Thanks for the link … I'll have a look.

I have Marcus but they don't pay the interest into an external account, you have to do it manually each month …. not sure about KRBS, I can't find the info on their website … I'll give them a call. Ideally, I'd like any new one to operate like the CSB account (automatically pays the interest to external account like an SO would) but with a bit more interest

I've also done the TSB thing too! I have fixed accounts that pay the interest into an external account but I am at the limit of what I want to lock away.

colsten

For KRBS, see clause 7.1 in http://kentreliance.co.uk/docs/default-source/default-document-library/savings/information/532_savings_terms_conditions_0618.pdf?sfvrsn=2

Easy to check - just open the account.

Bobblehat

Many thanks ….. that sounds great! You ARE good at this …..:beer: