Are there any accounts.... 20 November 2022 at 3:44PM in Savings & investments 16 replies 1.2K views

whattochoose

.....which pay monthly interest which you can withdraw, or nominate to be paid into a bank account where you're able to get your hands on it immediately?
I recently took out a Virgin Money bond at 4%, which pays monthly interest, but the money cannot be withdrawn until the account has matured.
Soon, I'll some extra funds as a result of a Masthaven account closing early, and I'd like to re-invest them in something which allows me to withdraw the money each month.
Any suggestions please?
Thank you.

EssexHebridean

I know Atom allow for interest to be paid away - their application process shows you the relevant amounts you would earn if the interest goes into the account itself or is paid away. 

eskbanker

Best bet will be to search the comprehensive listings at the likes of Moneyfacts, which allow filtering, so, for example, looking at all fixed term products paying interest monthly - there isn't specifically a search filter for that interest being accessible then, but the first on the list, Aldermore, does allow it to be paid out to another account.

BooJewels

The interest rate doesn't compete with most offerings, but the NS&I Income Bonds actually do what you're after - hence the name.  Currently paying 1.8%, which is paid into a nominated bank account each month and in other respects is an instant access savings account.  You need to leave 500 quid in the account to keep it open though. 

I'm a bit of a wuss when it comes to 'investing', so I stuck with somewhere I already had an account, whilst I decided what to do with the money. 

Band7

Dozens. https://moneyfacts.co.uk/savings-accounts/fixed-rate-bonds/?id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=2&terms=255&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2&quick-links-first=false

eskbanker

Band7 said:

Dozens. https://moneyfacts.co.uk/savings-accounts/fixed-rate-bonds/?id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=2&terms=255&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2&quick-links-first=false

But it's still necessary to filter further, given OP's requirement to access the interest monthly - for example, the first in the list, Zopa, states that interest must remain in the account for the whole term, reiterated on their own site at https://www.zopa.com/savings-accounts:

Interest is paid monthly into your fixed term account and can be accessed at the end of the term.

jimjames

Santander 2.75% savings account does what you want, not available currently but might be worth checking what else they have.

ranciduk

My shawbrook easy access account pays monthly interest into my nominated current account every month

current rate is 2.3% - not bad

Band7

eskbanker said:

Band7 said:

Dozens. https://moneyfacts.co.uk/savings-accounts/fixed-rate-bonds/?id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=2&terms=255&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2&quick-links-first=false

But it's still necessary to filter further, given OP's requirement to access the interest monthly - for example, the first in the list, Zopa, states that interest must remain in the account for the whole term, reiterated on their own site at https://www.zopa.com/savings-accounts:

Interest is paid monthly into your fixed term account and can be accessed at the end of the term.

I know but I am not doing the OP's job and check each of the accounts. There'll still be dozens which can have the interest paid away / easily accessible.

eskbanker

Band7 said:

eskbanker said:

Band7 said:

Dozens. https://moneyfacts.co.uk/savings-accounts/fixed-rate-bonds/?id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=2&terms=255&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2&quick-links-first=false

But it's still necessary to filter further, given OP's requirement to access the interest monthly - for example, the first in the list, Zopa, states that interest must remain in the account for the whole term, reiterated on their own site at https://www.zopa.com/savings-accounts:

Interest is paid monthly into your fixed term account and can be accessed at the end of the term.

I know but I am not doing the OP's job and check each of the accounts. There'll still be dozens which can have the interest paid away / easily accessible.

Yes, sure, agreed about spoon-feeding, just wanted to ensure that it's clear that the answer to the question is a subset of those accounts.

Albermarle

eskbanker said:

Band7 said:

eskbanker said:

Band7 said:

Dozens. https://moneyfacts.co.uk/savings-accounts/fixed-rate-bonds/?id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=2&terms=255&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2&quick-links-first=false

But it's still necessary to filter further, given OP's requirement to access the interest monthly - for example, the first in the list, Zopa, states that interest must remain in the account for the whole term, reiterated on their own site at https://www.zopa.com/savings-accounts:

Interest is paid monthly into your fixed term account and can be accessed at the end of the term.

I know but I am not doing the OP's job and check each of the accounts. There'll still be dozens which can have the interest paid away / easily accessible.

Yes, sure, agreed about spoon-feeding, just wanted to ensure that it's clear that the answer to the question is a subset of those accounts.

I thought spoon feeding the newbies was part of the job