Savings - Monthly Interest

robgoode

I currently have £5k in a savings account with Chase that pays out 2.1% AER, which is added to the account monthly. The rate is acceptable but I know you can get a higher rate elsewhere but with the likelihood interest rates are due to increase even further I'm not wanting to lock into a fixed savings account just yet. 

Is anyone able to advise what the best savings account are currently on the market that pays out monthly interest that isn't a fixed term? I'm looking to move my money to a new account until the time is right to fix but when I've done my research it looks like many of the easy access accounts only pay the interest amount once a year. 

surreysaver

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

JGB1955

Best Easy Access Savings | Up to 3% Variable | moneyfacts.co.uk

MDMD

robgoode said:

I currently have £5k in a savings account with Chase that pays out 2.1% AER, which is added to the account monthly. The rate is acceptable but I know you can get a higher rate elsewhere but with the likelihood interest rates are due to increase even further I'm not wanting to lock into a fixed savings account just yet. 

Is anyone able to advise what the best savings account are currently on the market that pays out monthly interest that isn't a fixed term? I'm looking to move my money to a new account until the time is right to fix but when I've done my research it looks like many of the easy access accounts only pay the interest amount once a year. 

I believe the general consensus is that fixed rates have probably peaked now as they are linked to other factors such as long term swap rates, gilts etc and will have priced in any future expected rate rises.

andyhicks88

Not sure it is the consensus that rates will rise much further, actually in the case of Fixes at least the consensus is, and indeed the actual reality is, they are coming down and that folks need to be quick to get the rates on offer right now. I don't see that EA will increase (much) beyond 3% either over the next few months so many might feel comfortable with the highest EA rates on offer now too.

jaypers

Don’t worry about moving cash around, just grab the best EA you can. I’m moving cash around on what seems to be every few days at the moment. Certainly don’t leave money in Chase. Not the highest, but Atom are very good..…monthly interest wherever you want it and currently 2.55% for easy access. Charter will be 2.75% on Friday too, although takes about 24 hours for withdrawals. 

refluxer

The Barclays Rainy Day Saver @5% (gross) would be a great place for £5k and that would give you the same rate of interest as the current highest-paying fixed rate saver currently available, but with easy access. It pays interest monthly and you're free to withdraw from the account at any time. It actually makes sense to withdraw the interest, as anything over £5k only earns 0.25%

In order to open a Rainy Day Saver, you'd need to open a Barclays current account and join their Blue Rewards scheme which means having at least £800 paid into your current account each month and paying a £5/month fee, but you receive £5/month for having 2 direct debits coming out of the account which cancels out the fee.

What's the reason for needing the interest paid monthly ? Even 5% is only going to get you around £20/month and that's presumably <£9/month in Chase. If you could live without the regular interest and opening a Barclays Rainy Day Saver sounds like too much hassle, then drip-feeding from your Chase account into a Regular Saver every month would get you between 3 and 5%. I would imagine that most of these accounts pay interest annually and not all allow withdrawals, although most will allow you to close the account early if needed. Note that even if an account pays interest annually, you'll still get the interest owed to you if you close the account before it's anniversary.

Mrnkar_2

I've just gone for the Aldermore easy access issue 15. Pays 2.72% for monthly interest and no limit on withdrawals.
It was 3% the other day but I missed that.
Just received first interest payment on my Santander 2.72 one so will move that if another better one comes along.
I know there are better ones but I've a bit of money from sale of my house and not yet bought anything else yet and might need funds quickly so happy with what I doing.

refluxer

Mrnkar_2 said:

I've just gone for the Aldermore easy access issue 15. Pays 2.72% for monthly interest and no limit on withdrawals.
It was 3% the other day but I missed that.

Just for info - the 3% account was the Double Access account, so only two withdrawals PA (to maintain the rate at least) for that one.