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  3. Yearly or monthly interest

Savings accounts with monthly or yearly interest

Yearly, monthly or when your account matures

Choosing when, and how, to receive your savings interest will usually depend on what you're saving for.

Monthly interest

If you're using your savings to supplement your income or your pension, you may want to choose an account that pays interest every month. We pay interest on the first day of each month.

Most of our ISAs and fixed rate bonds are available with monthly interest.

Yearly interest

If you don't need the interest for any specific purpose and just want your savings to grow, you could be better with yearly interest. We pay yearly interest on the anniversary of the first deposit.

How interest is paid

Depending on the type of account you choose, you may also be able to decide how the interest is paid:

  • Reinvested into your savings account - so that you'll earn interest on your interest
  • Into another Birmingham Midshires account - where it's easier to get your hands on your money
  • Into any UK bank current account - but it will usually take four bank working days to reach your account

Interest at maturity

Some savings accounts, such as our guaranteed equity bond and guaranteed equity ISAs pay interest when the bond matures.

FSCS – protecting your money. Find out more here.

Gross rate means that we will not deduct tax automatically from your interest. You are responsible for paying any tax due to HM Revenue and Customs.

AER means Annual Equivalent Rate. AER illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different offers.

Tax free is the contractual rate of interest payable where interest is exempt from income tax.

For telephone line opening times, please read the information in our contact section. Calls may be monitored and recorded for security and training purposes. If you're calling from outside the UK, please dial +441902 428 311.

© Birmingham Midshires
This site is intended for UK residents unless otherwise stated.
Birmingham Midshires is a division of Bank of Scotland plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628. Registered office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland No. SC327000.
To contact the FCA Consumer helpline, please ring 0800 111 6768. Alternatively call the Money Advice Service on 0300 500 5000 or visit www.moneyadviceservice.org.uk.