Banky team Reviewed editorial answerThe payout frequency decides when the return reaches you, not how large the yearly return is; the advertised rate is annual in every case.
Example at a hypothetical 20% a year per 100 pounds: with monthly payout you receive about 1.67 pounds a month, and with quarterly payout 5 pounds every three months. Either way the total is 20 pounds a year; the first is smaller, more frequent payments.
But a product's grid can price each frequency at a slightly different annual rate, such as a slightly lower rate for the more frequent payout. The yearly totals then differ slightly; that difference is part of how the frequency is priced and reflects when the money arrives, not a ranking of the frequencies. The choice comes down to when you need the money: to cover monthly expenses, say, or only every few months.
To compare properly, stay within the same product, amount and term, check the key-facts statement for the annual rate of each payout frequency offered, and ask the bank for the return computed on your amount for each one.