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Want to reap the rewards of saving sooner rather than later? A monthly interest savings account will boost your bank balance each month*. There’s no need to wait for a year to go by to see the return.
Why Shawbrook?
- Receive your interest monthly or yearly
- Award-winning products
- Consistently competitive rates
- FSCS protected up to £85,000
- Open and manage your account online
Why a monthly interest option could be for you?
Find the best monthly interest savings account for your needs
With a monthly interest account, the interest is calculated on your balance and paid either directly to you or added to your savings balance each month. This means you can see the benefits of saving sooner rather than waiting for an annual interest payment.
The difference between monthly and annual interest is that annual interest is paid after a year, whereas monthly interest is paid monthly, making it a good option if you want a regular income stream.
However, savings accounts that pay interest annually typically offer more competitive interest rates because of the effect of compounded interest. In simple terms, rather than being paid out monthly, annual interest can accumulate over the year, potentially leading to higher returns on the sum you’ve invested.
*The amount you earn in interest will depend on how much money you save, and the interest rate offered on the account you choose.
View our savings accounts
Explore our products
Easy Access accounts
Discover Easy Access savings with a competitive rate.
Withdraw your money whenever you need it – open as a sole or joint account.
See Easy Access rates
Cash ISAs
Easy access or fixed rate on your ISA account – it’s up to you.
Invest up to £20,000 tax-free each year and choose from easy access or fixed rate accounts.
See cash ISA rates
Fixed rate savings accounts
Find a fixed rate savings account with a term that suits your needs.
Benefit from a guaranteed interest rate with terms ranging from 9 months to 7 years.
See fixed rate savings accounts
Notice savings accounts
Open a Notice savings account with as little as £1,000.
Enjoy more flexibility than a fixed rate bond and choose a 45 or 120-day notice period.
See Notice account rates
Help
Below are some of the most common queries about our savings accounts.
What is a monthly interest savings account?
A monthly interest savings account is a type of account that pays interest on its balance into a nominated bank account on a set day each month. This day is set by the provider and will likely be the day that the account was created.
The interest rate can either be variable (meaning it could go up or down) or fixed rate (where it will remain unchanged for an agreed term).
What’s the difference between monthly interest and annual interest?
As the names suggest, a key difference between monthly and annual interest is how often it’s paid. Monthly interest is paid on the same day every month, whereas annual interest pays all the interest you’ve earnt over a year in one lump sum.
Some providers can only make payments Monday – Friday and so the day you receive your interest may differ.
The interest rates between monthly and annual interest accounts will also differ. The AER changes because annual interest accounts benefit from compounded interest (the interest you earn on the interest you’ve already earned). With an account that pays monthly, interest is paid directly into your nominated bank account each month and is essentially withdrawn from your savings account. In contrast, an annual interest account will still earn interest each month but this interest will stay within the savings account. So, you’ll earn interest on the interest itself the following month. Over a year that results in a higher amount of interest overall as your balance (the amount you’ll earn interest on) increases each month.
Is my money protected in a monthly interest savings account?
All of Shawbrook’s savings accounts are protected by the Financial Services Compensation Scheme (FSCS). The FSCS will protect funds across all of your Shawbrook accounts up to a maximum value of £85,000 for sole account holders or £170,000 for joint accounts.
Any amount you hold above these limits (including across multiple accounts) is unlikely to be eligible for FSCS protection, although there are some exceptions for temporary high balances. For further information, visit www.fscs.org.uk.
There is no difference between protection for monthly or annual accounts. As Shawbrook’s savings accounts are cash savings accounts (as opposed to stocks and shares investments), your capital is not at risk.
Need more help?
We have a range of information to help you understand savings including how our products work, operating your account and getting in touch with our team.
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Savings accounts for your business
Make your cash work as hard as you do. If your business is in the enviable position of having some spare cash to hand - even if it’s for a finite period of time - it makes sense to get it working for you. At Shawbrook we have a range of solutions designed to suit the needs of your business.
Explore business savings
Financial Services Compensation Scheme (FSCS)
Your eligible deposits with Shawbrook Bank Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Joint accounts are protected up to £170,000. Any deposits you hold above the limit are unlikely to be covered. For further information visit www.fscs.org.uk
