Press Release of the Day – 26th May
Savers switch to taking monthly interest on their savings
Research released today by Investec reveals 25% of people with savings accounts take interest from them on a purely monthly basis, and people have switched to doing this, partly driven by their rising cost of living and lost monthly income from elsewhere.
The findings reveal that of those people taking monthly interest, around 16% switched between November 2018 and October 2019 from taking it annually. A further 8% of savers who received interest annually said they planned to switch to monthly between October 2019 and September 2020.
Of those people who switched to taking interest monthly between 2017 and 2019, 16% claimed they did this as they needed a more regular income because their cost of living had risen. Nearly one in three (31%) switched because they were not earning any extra interest as a result of taking it on an annual basis, and 4% did it to replace lost monthly income from elsewhere.
For those people looking for a monthly return on their savings, Investec’s research from the end of last year revealed 31% of easy access savings accounts offered this, as did 34% of notice savings accounts and 32% of fixed rate bonds.
Linda Brown, Head of Savings at Investec, said: “Our research shows that the ability to receive interest on your savings on a monthly basis is important for many people. However, our findings from October last year showed that of the top 20 easy access savings accounts, only 11 offered this.”
Andrew Hagger, Savings Expert at Moneycomms.co.uk said:” For some customers the ability to receive interest income monthly is a ‘must have’ feature when choosing a savings account as they look for ways to supplement their monthly income.”
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