deposit accounts which pay interest monthly

A

amadan

Guest
hi,
I'm looking to invest a lump sum which I may need access to at any time.
Therefore I would like interest to be paid montly.
The only accounts I can find which do this and have an interest rate greater than 4% are northern rock and first active eSavings. Even the much loved Rabo appear to pay interest annually.
Does anyone know of any other alternatives?
thanks,
Amadan.
 
Why is it important that the interest is paid monthly ? Sureley you could draw down the capital if you need the money and let the interest roll up ?

Ango Irish do a monthly saving account
 
Most accounts that pay interest annually will not penalise you if you close the account other than on an anniversary of the account opening. For example NR offer annual or monthly payment of interest and the latter is c. 0.25% (?) lower. But if you choose annual interest (at the higher rate) and close the account before a year is up you get paid the full annual rate pro-rata. The only reason to explicitly opt for monthly payment of interest is if you need a monthly income from deposit interest and you are not prepared to withdraw from the capital lump sum as suggested above.
 
ClubMan said:
Most accounts that pay interest annually will not penalise you if you close the account other than on an anniversary of the account opening.
Click to expand...

My assumption was that they would penalise you but if this is not the case I'm glad to hear it.
Interestingly NR have an explicit statement in their Terms and Conditions confirming what you say as follows:

"Interest will be earned up to the day preceding a withdrawal, including closure"

However I could find no such statment in for example the Anlglo Irish Terms and conditions.
Thanks for your replies...
 
Actually - I could be wrong in saying "most". You need to check the terms & conditions of any specific offering to check what rules apply.
 
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