Make the most of your nest egg
If you want a regular income from interest payments then you should look into monthly income accounts. These pay interest monthly, rather than paying each year or when the account matures (or finishes - like when a savings bond matures). Who should get one?
For some people there comes a time when they want to start enjoying the money they've been squirreling away and get a regular income from it. If you no longer need to rely on long-term high-interest savings and want to supplement a pension then a monthly income account could be the way forward. An account that pays out monthly allows you to enjoy the income without taking a chunk out of your savings. Which one should I get?
When you are normally shopping around for a savings account you compare the Annual Equivalent Rate (AER) to see which account will offer you the most to add to your pot and then in turn gain interest (find out what an AER is here). This is not the case when you are going to withdraw the interest straight away. When looking for a monthly income account you should compare the gross amount of interest instead.
Kaupthing offers a fantastic rate of 7.15% and Chelsea offers a rate of 6.50 AER. FirstSave’s Easy Access account gives you 6.09% and ICICI offers 6%. Once you have chosen the account which seems most suitable for you then you can start the quick and easy application process. It will only take a few minutes but you must be a resident of the mainland UK and be aged 18 or over. It's easy to apply online, just follow the steps. To apply you will need: empty - Your UK Bank current account details
- A personal email address and full internet access (for security reasons it is that you do not use an email address provided by your employer)
Chelsea Building Society If you are applying for the Chelsea Building Society account then you have to download a one-page PDF form from the grey menu on the left hand side of the screen. Choose the 'Application form' option. To download the form click on the icon in the yellow box marked 'Application form (new and existing savers)'. Print off the form, fill it in and send it back to the building society at: Chelsea Building Society
Savings Department
Freepost SW3414/4
Thirlestaine Hall
Thirlestaine Road
Cheltenham
GL53 7BF
Don't forget to include a cheque for at least the minimum deposit of £250. Kaupthing Edge
If you apply for the Kaupthing account then click on the 'Apply now' button and once you have checked you meet the basic criteria listed on the website (being a UK resident, being over 18 and having a UK savings account), click on 'Next' and fill in your information in the boxes. It's as simple as that. They will want you to provide bank details and the answer to a memorable question of your choosing (e.g. mother's maiden name). Then fill in your bank details and decide how much money you want to transfer. That's it! First Save
To apply for the FirstSave click on the big red 'Apply now' button. You will need a bit of extra information for this one so have these things handy: - Your current UK passport or UK driving licence
- Your national insurance number
- Your mother's maiden name
- Memorable data for security (such as your pet's name)
First approve the terms and conditions and copy the code when requested. This is in place to prevent fraud. Then enter your details when requested. It doesn't take very long and you can download a printer-friendly version if you would prefer to have a hard copy of the form. ICICI Account If you apply for the ICICI account then follow the link and click on the big orange button on the left hand side of the screen marked 'Apply now'. A short form will pop up on screen and you just need to fill in your details. Once you have filled in your home and employment details you will be taken to the next screen where you need to fill in your current bank details and approve the terms and conditions. It's so simple! This one's good because it only requires a minimum deposit of £1 to open. How do I put money in?
The same way you put money into other types of savings accounts - either online, by post or across the counter. Just click on any of the links above to take you to the best fixed-rate savings accounts that we have found. Useful Links Related articles
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