Fixed term savings interest paid annually?

TorkseyFern

Hi could anyone advise me if there are bank accounts/institutions that have accounts available which allow you to withdraw your interest earned annually or payout your interest annually whilst still leaving the initial lump sum invested, i.e the interest is compounded if you have for example a five year fixed rate deal? I cant seem to get an answer even though I have searched here there and everywhere. The only thing that comes back is that none of the money is touchable till the end of the fixed term.

ColdIron

Some do, some don't, you'll have to check them individually. I never use those that wait until maturity for tax reasons

Obviously if you withdraw interest annually it won't compound, no one will pay interest on money not on deposit

The first page of 5 year fixes at Moneyfacts shows 6 of the 10 listed pay interest on the annual anniversary

https://moneyfactscompare.co.uk/savings-accounts/5-year-fixed-rate-bonds/?quick-links-first=false&product-favorites-first=false

wmb194

TorkseyFern said:

Hi could anyone advise me if there are bank accounts/institutions that have accounts available which allow you to withdraw your interest earned annually or payout your interest annually whilst still leaving the initial lump sum invested, i.e the interest is compounded if you have for example a five year fixed rate deal?

 I cant seem to get an answer even though I have searched here there and everywhere. The only thing that comes back is that none of the money is touchable till the end of the fixed term.

Tons, having interest paid away monthly or annually from fixed rate, fixed term bonds is a common option. You should be able to filter for them on MoneyFacts’ website. Off the top of my head Vanquis, Atom, KRBS, RCI and Leeds offer this but there are many more. You won’t be compounding the interest in the fixed rate bond, though.

https://moneyfactscompare.co.uk/savings-accounts/