To ask where I can put 10k to make me a bit of money that pays out every month?

[emilyasp]

I have 10k and could really do with 50 pounds a month interest. Is this possible? I am not financially savvy and don’t know where to begin. I am a 40% tax payer and don’t know if that makes a difference either. TIA

You'd need 6% interest, so unlikely.
Have a look at https://www.moneysupermarket.com/savings/
Higher rate rate payers pay tax on interest above £500 pa.

Following with interest, I'll be doing the same soon

You need to look for accounts with interest paid monthly.

The alternative is to invest it, but that has more risk.

If you wanti interest just look in any comparison site for the highest number for the length of time you want to lock the money away for.

Like a PP says you're not going to get 50 a month post tax

Santander do an account that pays 7% if you have an edge current account. £4k max in it though - that pays £23 a month.

I have a cahoot instant access that pays just under 5%. That pays monthly.

You may get £40 ish with Shawbrook - pay monthly interest savings account.

Chip instant access pays 4.84% and pays monthly. Not too far off.

I have £10k in an online ISA account with Zopa that gives me £42 per month (5.08%). Better cash ISAs are available I think which might get you slightly closer to £50.

I've got a couple of 6% accounts but they're regular saver types which you can't dump a lump sum into and max out at £5k in any case.

Following with 'interest'

Surely you're looking at an ISA, being a 40pc taxpayer...have a look on MoneySavingExpert for best rates.

Try Atom fixed 1 year savings. I put away £15k in 2023 from 24th Dec 2022 to 24th Dec 2023 and got on average £53-£55 a month paid out in interest. Rates might be better now than I had last year which was 4.17%.. Good luck!

5.1 % is about the best currently on instant access savings, so about £41.66/mth, but yes, if you're a higher rate tax payer and depending what else you have going on, you might have to pay tax on the interest...
You can sometimes get higher rates if you lock it away for longer, but only you know what will work for your situation.

Putting it in ISA is tax free but you won't have the use of the interest then, it'll accumulate.

Money saving expert website is your friend, go do some research.

Premium Bonds

Premium Bonds

Bad idea with only 10K, if you want regular income.

See what you did there

Following with 6% interest

I've got a saga easy access account which pays interest monthly. 4.75%. I have £4000 which pays about £16 a month.

This is a great thread OP.. keen to find out too x

I also have an atom account however interest was paid at end (so every 6 months) the rate was very good though -£265 on £10k for 6 months. Santander had some good rates on cash isa’s

Monzo premium do a similar 4.6% instant access.

I use nexo (stable coin only) and get 7% but I lock it in for 3 months at a time. So you get the 7% at the end of the 3 months. I usually just reinvest it.

Coventry Building Society have a 1 year 5.15% account that pays interest out monthly. You are allowed 3 withdrawals over the year before you lose interest (50 days I think). I’m taking the interest out and paying it into a Halifax saver account that pays 5.5% but you can only pay in £250.00 a month max.

I opened up another savings account with moneybox yesterday.

5 % interest and you're allowed 1 withdrawal per month.

This is a loyalty account though and only available to people who have been with them for longer.

You’re probably better off putting the money in Premium Bonds. You may get some back monthly, although of course there could be months with nothing!