Monthly Income Savings Account

A monthly income savings account provides a steady stream of income while securing a fixed rate of interest on your initial deposit. You lock in your initial deposit for a set term at a fixed rate of interest (meaning it can’t be withdrawn until the agreed term expires) then the partner bank pays interest earned on a monthly basis. You receive this money straight into your Raisin UK Transaction Account. 

Choosing the most suitable monthly income savings accounts for you depends on your personal circumstances and savings goals. In general, savers consider the following: 

• Term: how long you’ll lock your money away for. Funds cannot be withdrawn until the end of this term.
• Interest rate: The return you’ll receive on your deposit
• Deposit protection: Eligible deposits with FCA-regulated banks are protected up to £120,000 per person, per bank by the FSCS
• Minimum and maximum deposit limits: How much you’ll need to deposit to open the account, and how much you can deposit in the account in total. 

Depending on your total interest earned across all accounts and your income tax band, you may need to pay tax if you exceed your Personal Savings Allowance. Raisin and our partner banks don’t deduct interest automatically, so it is your responsibility to declare and pay any tax owed to HMRC. It’s important to note that interest is taxed in the year it’s paid.

We will notify you before your term ends.

Depending on the terms of your chosen account, you’ll have one of the following options:

• Your original deposit and any outstanding interest will be paid to your Raisin UK Transaction Account. 
• If renewal is available, you’ll have the option to renew your monthly income savings account for a further term. 
• If the product includes auto-renewal, your monthly income savings account will renew for a further term at maturity. Auto-renewal can be disabled up to one day before maturity in your Raisin account. 

A monthly income savings account provides monthly interest payments on your initial deposit, providing a predictable return and regular source of income. This can supplement any additional income, such as salary or pension payments, but it’s important to note that funds cannot be withdrawn until the end of the agreed term. 

With Raisin UK, you can compare monthly income savings accounts and fixed rate bonds from multiple banks and building societies in one place. One registration gives you access to all of the accounts on our platform without the need to fill out separate paperwork or provide your full details for each application.