How a Monthly Interest Savings Account Can Improve Your Personal Finances
Posted by Josephm09 on May 12th, 2020
There comes a point in life when we need to start getting serious about our personal finances. After all, it is on the basis of our financial health that we make the majority of the biggest decisions in our lives. Right from our monthly income, expenses, savings, to investments, all the different aspects should be taken care of to try and build a solid financial foundation.
Banks in the UK can also help us in this process of solidifying our finances with products like monthly interest accounts. Take a look at what this account is and how it can help our finances-
1. Earn Interest on Your Savings
To keep up with inflation, it is no longer adequate to just save. You need to look for ways in which your savings could help you generate returns in the safest possible manner. The monthly interest account perfectly matches this requirement.
It is an interest-bearing account that can earn you interest at the rate of up to 0.75% AER. The account accrues interest every day based on the end of the day balance. Your total interest income is then deposited into your account by the bank on the last business day every month. Alternatively, you also get the option to select annual interest payments.
2. Start Saving with Only £1
Some banks do not have any minimum balance requirements for their monthly interest accounts. You can open the account with only £1. This ensures that you can start saving and earning interest even if you have recently started working or don't have a lot of money to deposit into this account.
When your ultimate goal is to strengthen your finances, every pound can help. Even smaller but regular deposits into the interest account can help you accumulate a decent amount of money in the longer run.
3. Easy Access to Your Savings
The monthly interest account works just like a standard savings account wherein you can withdraw your funds any time you like. While there are a few banks that have monthly withdrawal limits on their savings accounts, the interest accounts generally do not have any such limits.
You are free to deposit and withdraw the funds anytime you like without worrying about any charges or penalties. This feature ensures that you can deposit any amount of money that you don't readily need and earn interest on the same. You can then withdraw the funds as and when the need arises.
4. Set Up a Regular Savings Plan
To add more discipline to your savings plan, some top banks in the UK also allow you to set up a regular savings plan. With this option, you can select a fixed monthly amount that you'd like to deposit into this interest-bearing account.
On a fixed date, this amount will get deducted from your linked account and be deposited into the monthly interest savings account. This will ensure that you don't forget depositing funds regularly into this account.
Strengthening Your Financial Health with a Monthly Interest Savings Account
As can be seen above, there are many different ways in which a monthly interest account could help you improve your finances. If you are serious about your finances and want to earn safe returns on your idle funds, a monthly interest account is one of the best options in the UK.
Look for a reputed bank offering this account facility to know more and begin the application process.Also See: Monthly Interest, Interest Account, Savings Account, Savings Plan, Savings, Monthly, Interest
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