Just like any other form of investment in the UK, you should try to know as much about the monthly interest bank account as possible. Five of the most common questions about these accounts are answered in this post.
If you are looking for a way to grow your savings in a safe and hassle-free manner, a monthly interest account can be an excellent option in the UK. The account not only earns a fixed rate of interest but also allows you to deposits and withdraws funds as and when you like. The interest is calculated based on the maintained balance and is deposited at the end of every month.
But while the monthly interest account is not as complicated as most other forms of investment, you should get all your queries answered before proceeding with the account opening process. Five common questions regarding these monthly interest accounts are answered below-
- What is the Interest Rate of Monthly Interest Account?
The interest rate varies based on the bank you select. Some top banks in the UK offer up to 1.00% AER (Annual Equivalent Rate) on their monthly interest accounts. This makes them a better choice over standard savings accounts that offer a considerably lower rate of interest.
For your interest savings account, you could compare top banks and select one that offers a highly competitive interest rate.
- How to Deposits Funds in Your Monthly Interest Account?
In most cases, you will be required to link your monthly interest account to another existing account in the same bank. Deposits and withdrawals to and from the interest account are processed through this linked account.
Some banks also allow you to set up a monthly savings plan where a fixed amount is automatically withdrawn from your linked account and is deposited into the interest account to help you earn more interest.
- Are There Any Withdrawal Charges?
This again depends on the bank you select. Some banks have limits on the number of withdrawals you are allowed to make in a month. Withdrawals above the limit attract a withdrawal fee.
But there are banks in the UK that don’t have any such restrictions. They allow you to deposit and withdraw your funds any number of times you like.
- What are the Minimum Balance Requirements?
Most high interest accounts in the UK have high minimum balance requirements of £1,000 and even more. But you should prefer banks with low or preferably no minimum balance requirements.
Banks with high balance requirements unnecessarily block your funds, and it can be challenging to maintain the balance every month, especially if you have just started earning and saving. You will also be penalized if the balance falls below the minimum limit.
- What are the Eligibility Requirements for Monthly Interest Account?
If you are above 18 years old and already have an account in the bank, you can easily open a monthly interest savings account in the UK. But note that the bank would like to verify your identity and address before processing your account opening request.
You can apply for the account online or visit the nearest branch of the bank to submit the account opening form.
Boost Your Savings with a Monthly Interest Bank Account
Earning interest every month while also being able to access your funds any time you like are benefits that you don’t generally receive with a lot of investment options in the UK.
Now that you have answers to some of the most common queries, look for a top bank to open your monthly interest account and watch your savings grow.