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Where to Invest Money in the UK to Get Monthly Income

Invest money to get monthly income

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Where to Invest Money in the UK to Get Monthly Income

Where to Invest Money in the UK to Get Monthly Income

Who wouldn’t like additional monthly income with little investment? Most of Brits having little funds to invest want a no finger raising monthly income to support their living expenses or to forward their living standards. On the other sides, most of saving schemes are for long-term investment; the waiting period for getting the return may be of 12 months or even more. Some investment schemes payback after two, three or six months. Investment with monthly return brings many additional direct and indirect advantages:

  • You get fix income each month
  • You can budget your expenses better
  • Low risk so additional peace of mind
  • You can invest the extra income in other saving schemes
  • Additional monthly income reduces the borrowing needs

When you can easily find many saving schemes for annual return; here, I list some prominent saving schemes paying back the earned income on a monthly basis:

Basset and Gold Fixed Monthly Income Bonds:

These are good for the investors looking to generate predictable monthly income and steady cash flow paid into bank account every month. The returns are not affected by the fluctuations in Bank of England interest rate. You don’t pay any fee. 100% of capital is returned back after the bond term. Although early redemption is not possible, yet, it is being liked for the people who want the invest 3 or 5 years. The 3 Year Fixed Monthly Income bond yield is about 6.22% and 5 years’ bond yield is 7.46% p.a. Basset & Gold is the brand name of Basset & Gold Plc and B&G Finance Ltd.

3-Years Flexible Monthly Income Bond by Barclays:

The 3-years flexible monthly income bond by Barclays is the good choice for the people who can deposit the money for three years. The return is paid back into the account on a monthly basis. Investment can be anywhere from £1 to £1 million. Return is 1.00% gross p.a./AER1 for the balance. Three free withdrawals are possible but each withdrawal is limited to 10% of the initial deposit.

RCI Bank Freedom Savings Account:

Interest rate AER is 1.30%. Minimum deposit is £100 while the maximum deposit limit is £1,000,0000.  Whether you are saving for large purchases in future or looking for a dependable source to invest the savings, Freedom Savings Account from RCI Bank is a good option to focus better on life. Deposits are protected up to £85,000 by the Financial Services Compensation Scheme (FSCS). Free, unlimited payment, free withdrawals, no penalties, payment in £100 format, monthly interest payment, trusted by more than 75,000 British depositors are the encouraging features of RCI bank freedom saving the account.

Aldermore Easy Access:

Aldermore, the award-winning bank in the UK, offers a wide range of options to save more and earn more on a monthly basis. Deposits up to £85,000 are protected by the Financial Services Compensation Scheme benefit. Interest rate AER is 1.25%. Minimum deposit is £1000 while the maximum deposit limit is £1,000,0000.  The interest rate may fall up to 0.75% if you make than three withdrawals in one year. It is a good choice in case you are looking for regular income to invest anywhere else for better earning with focus on earning over the interest gained.

Paragon Bank 120 Day Notice account:

With notice account, you need to give a notice about withdrawal from the deposited money. The sacrifice gives you the extra benefit of better interest rate compared to the normal saving account. Paragon Bank Notice account demands 120 days notice. The yield is 1.80% interest rate AER. Minimum deposit is  £500 while the maximum deposit limit is £1,00,000.

Oak North 90 Day Notice Deposit:

Paragon Bank Notice account demands 90 days notice. The yield is 1.77% interest rate AER. Minimum deposit is £1,000 while the maximum deposit limit is £250,000. If you are uncertain about the need for deposited money but can deposit a high amount at the start, it is a good option. The interest rate is at slightly lower side but the notice period is relatively short that empowers you to deal with any short-term emergency funds requirement easily.

Charter Savings Bank 60-Day Notice Account:

Charter Savings Bank account demands 60 days notice. The yield is 1.46% interest rate AER. Minimum deposit is £1,000 while the maximum deposit limit is £250,000. It is a good option if you are not sure about the midterm requirement of portion of deposited money. You can deposit a high amount at the start in multiples of £1,000. The short notice period is good for the people having no alternative to arrange the funds to meet out small amount financial emergency.

Masthaven 3 Year Fixed Term Bond:

Masthaven Bank Limited is a financial services provider registered in England & Wales. All the deposits up to £85,000 are protected by the Financial Services Compensation Scheme. The company offers a wide range of saving schemes for monthly earning. The deposits can be made for 2 years or three years. The minimum initial deposit is £ 500. The interest rate is 2.3 % AER. The maximum limit for investment is £ 250,000. The limitation is that no withdrawal or account close is permissible during the term.

Charter Savings Bank Fixed Rate Bond:

Charter Savings Bank is relatively a new bank in the UK. The wide portfolio of saving accounts is designed to cater to the needs diverse of the UK savers. It offers three core saving accounts types: easy access account, notice account and fixed rate bonds for the deposits from minimum £1,000 to maximum £250,000. Easy Access account offers a variable rate of 1.25% AER. The 95 days notice account offers variable AER of 1.75%. Fixed Rate Bonds for 1,2,3,4 and 5 years offers AER from 1.80% up to 2.50%. All the accounts are available with monthly and annual interest payment options.

Newcastle Two Year Fixed Rate Cash ISA:

Two years fixed rate cash ISA by Newcastle allows to save up to £20,000 and to get tax-free interest. The monthly gross AER is 1.64%. Interest is paid on the last business day of each month. The account can be opened online or at a branch. Minimum opening deposit is £500. Withdrawal/transfer is permitted but it may cost the interest for 120 days.

There are numbers of saving schemes being offered by UK banks and financial institutions; many of these are structured to help the Brits get monthly income so that they could reduce dependency upon direct lenders to meet out the emergency expenses or to live more comfortably.

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Aaron Smith is a content marketing executive at Blogonfinance. He frequently blogs for the Blogonfinance business blog and Forbes. Connect with him on Twitter @aaronsmith20111

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