I've opted for annual interest on my savings account as the rate is slightly higher (6.26% as opposed to 6.09% for monthly interest). Have I done the right thing? Or would it work out more beneficial to have the monthly interest accruing interest as well? (seestars)
Theres probably not a lot of difference unless youve got quite a stack of money to invest. I have a savings account linked to my business account to stick VAT money in until I have to pay it. I chose monthly because i need access to it. If your money is just being deposited and left indefinately then youve probably gone for the right option.
It actually works out the same over a year If you get interest monthly, you could (in theory) invest that interest and get "interest on interest" (otherwise known as compound interest). If you add all that up it should amount to the same thing. By the way this is a useful source of data: - http://www.moneyfacts.co.uk/savings/bestbuys/internet-savings-accounts.aspx
