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Annual or monthly interest

Annual, 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.

Annual interest

If you don't need the interest for any specific purpose and just want your savings to grow, you could be better with annual interest. We pay annual 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 BM Savings 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 interst when the bond matures.

Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.

NET rates are illustrative only, allowing for the deduction of income tax at 20%. If you are a higher rate tax payer, you may have a further amount to pay. If we deduct more tax than you have to pay this can be reclaimed from HMRC.

Tax Free means free from personal liability to Income Tax.

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© 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 for accepting deposits by the Financial Services Authority. It is entered in the FSA's Register and its Register Number is 169628. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh, EH1 1YZ.
To contact the FSA Consumer helpline, please ring 0300 500 5000 or visit www.moneymadeclear.org.uk/.