Can anyone recommend a fixed cash ISA suitable for generating a monthly income

DoneWorking

I'm looking for a fixed rate cash ISA  paying at least 4.5% interest 

I would like to withdraw this interest each month leaving in the initial balance for the period of the fix.

I need a Fixed Cash ISA that does not penalise for withdrawal of the monthly interest each month.

I'm interested mostly in one year fixed but would consider a longer period if the interest is still reasonable .

Thanks in advance for any recommendations 

JGB1955

There are at least 10 that meet your criteria at Best 1 Year Fixed Rate ISAs | Rates Up To 5.05% (moneyfactscompare.co.uk)

Mark_d

with Paragon Bank you can have your ISA interest paid directly to your current account

DoneWorking

JGB1955 said:

There are at least 10 that meet your criteria at Best 1 Year Fixed Rate ISAs | Rates Up To 5.05% (moneyfactscompare.co.uk)

Do they do monthly interest and can you take it out each month without penalty 

DoneWorking

Mark_d said:

with Paragon Bank you can have your ISA interest paid directly to your current account

Can you pay the monthly interest into your current account each month without incurring any penalties 

JGB1955

DoneWorking said:

Mark_d said:

with Paragon Bank you can have your ISA interest paid directly to your current account

Can you pay the monthly interest into your current account each month without incurring any penalties 

Yes.  I currently receive monthly interest directly into my current account from Charter, Paragon, Vanquis and Atom.

Beddie

Charter savings do monthly interest paid into your bank account. Very good website and reliable service.

https://www.chartersavingsbank.co.uk/Products/ISAs

DoneWorking

JGB1955 said:

DoneWorking said:

Mark_d said:

with Paragon Bank you can have your ISA interest paid directly to your current account

Can you pay the monthly interest into your current account each month without incurring any penalties 

Yes.  I currently receive monthly interest directly into my current account from Charter, Paragon, Vanquis and Atom.

Thanks 
That's the info I was looking for 
I guess it's only if you remove the actual ISA Money you incur penalties.
Therefore no penalties for removing the monthly interest each month 

refluxer

DoneWorking said:

Mark_d said:

with Paragon Bank you can have your ISA interest paid directly to your current account

Can you pay the monthly interest into your current account each month without incurring any penalties 

It's important to distinguish between withdrawing the interest yourself and having it paid away.

If an account has the option to have monthly interest paid away, then that is automatically carried out by the ISA provider and there won't be any penalties for choosing that option. 

It's only if you withdraw money yourself (interest or otherwise) from a fixed rate cash ISA that there would usually* be penalties.

*there are one or two exceptions to this such as Barclays, who do allow a certain number of penalty-free withdrawals from their fixed rate cash ISAs.

DoneWorking

refluxer said:

DoneWorking said:

Mark_d said:

with Paragon Bank you can have your ISA interest paid directly to your current account

Can you pay the monthly interest into your current account each month without incurring any penalties 

It's important to distinguish between withdrawing the interest yourself and having it paid away.

If an account has the option to have monthly interest paid away, then that is automatically carried out by the ISA provider and there won't be any penalties for choosing that option. 

It's only if you withdraw money yourself (interest or otherwise) from a fixed rate cash ISA that there would usually* be penalties.

*there are one or two exceptions to this such as Barclays, who do allow a certain number of penalty-free withdrawals from their fixed rate cash ISAs.

Thanks Refluxer
I will keep this in mind when I set up the ISA

Malchester

I have fixed rate ISAs with Aldermore, Ford Money (FCE Bank) and Gatehouse Bank all with monthly interest paid away to my current account. All very efficient and I would recommend any of them.

As others have said don't withdraw the interest yourself. When you open the account that allows monthly interest you will be asked as part of the opening process whether you want interest monthly or annually and also where you want the interest paid  (into the ISA or to your nominated account).

Check before applying that the ISA you choose allows interest to be paid away (some only allow interest to be compounded)