Monthly Interest Savings Account paid to external account?

Bobblehat · 15 April 2019 at 1:29PM

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 · 15 April 2019 at 1:55PM

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 · 15 April 2019 at 2:30PM

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 · 15 April 2019 at 3:04PM

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 · 15 April 2019 at 3:11PM

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

Monthly Interest Savings Account paid to external account?

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