Looking for a secure and convenient way to grow your savings? Want easy access to your funds any time you like? A monthly interest account in the UK can be an excellent option. Read this post to know five of the top features of this account.
If you are looking to invest your money, there is no shortage of highly rewarding options in the UK. But most such options that deliver higher returns require you to remain invested for a long tenure. While such investments are ideal for your long-term goals, you also need to make sure that you have adequate savings that are liquid or can be easily accessed.
A monthly interest account not only enables you to keep your savings liquid but also helps you grow your savings. Take a look at five of the best features of this account-
1. Monthly Interest Payment
As the name suggests, these bank accounts generate interest income on the balance you maintain. Based on the applicable interest rate and the maintained balance, the bank will deposit the generated interest directly into your account every month.
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With some of the top banks in the UK, the interest rate could be as high as 1% AER. This makes the interest account a smart way to grow your savings. Moreover, you don’t have to wait for several months or even years to receive the interest income.
2. Complete Control of Your Funds
Banks mostly require you to link the monthly interest account with an existing account for easy flow of funds. The interest accounts do not have any fixed maturity, and you are free to deposit and withdraw your money any time you like.
So, you can consider depositing funds that you don’t readily need and then withdraw the same as and when required. You are free to deposit and withdraw money as many times you like without worrying about any penalty.
3. Deposit Any Amount You Like
One of the greatest advantages of such interest accounts is that they do not have any minimum balance requirements. You can deposit any amount you like. Moreover, there is no limit on the maximum amount you can deposit.
So, even if you are not able to save a fixed amount every month, you can still take advantage of the monthly interest account by depositing any amount of your monthly savings.
4. Automatic Monthly Transfers
Some of the banks also allow you to set up monthly deposits. With this feature, you can fix a monthly amount that you’d like to deposit into the interest account from your linked bank account. The selected amount would be automatically debited on a fixed date every month.
This will eliminate the need for you to make the deposits every month manually. If you believe that manual deposits are a better option for you, the same can be easily done through phone and online banking.
5. Minimum Documentation
If you already have an account in the bank, your identity will be electronically verified by the bank for opening the monthly interest savings account. If for some reason, your identity could not be verified, you will then have to visit the nearest branch of the bank and submit your identity and address proof.
The entire account opening process is super simple, and it should not take more than a few days for you to have a fully functional monthly interest account.
Selecting the Right Bank for Your Monthly Interest Savings Account
While the monthly interest account sure offers a host of advantages, a lot depends on the bank you choose for your account. Make sure that you select a reputed bank that offers highly competitive interest rates.
Also, look for features that best suit your custom requirements. For instance, if you are an NRI in the UK and regularly send funds to India, go for a bank that offers cost-efficient and convenient money transfer services. This will help you pick a bank that is better equipped to take care of your financial needs.