It’s important to select a savings account that’s right for you. For most customers, interest rate is a key priority. Access to the money is another important consideration – there is no point locking up your money for two years if you think you might need to access it in a couple of months’ time. However, in all the analysis, one thing that’s often overlooked is the option to select between monthly and annual interest payments.
When you’re saving for a specific goal, it can make sense to get all the interest paid into your account annually. However, if you’re relying on your savings as your main source of income, or as a supplement to a regular pension income for example, monthly interest might be a good choice for you. Not only could it help to cover a regular bill or pay for a monthly subscription, you might find it works out as a useful way to pay for special treats or even take the sting out of unexpected expenses.
We introduced the option to elect for monthly interest on all our accounts in Autumn 2014 and, since the beginning of this year, 31% of customers opening new accounts with Paragon Bank have taken this choice. A popular option for Paragon Bank savers!