TSB Bank has announced that the Classic Plus Account will see a rate reduction from 5% AER on balances up to £2,000, down to 3% AER on balances up to £1,500 on 4th January 2017.

In addition, Lloyds Bank has announced that the Club Lloyds Current Account will reduce by up to 2% AER on the 8th January 2017 and will then pay 2% AER on all balances up to £5,000.

Whilst this news may be a heavy blow for many savers, both of these accounts will still be highly competitive in the current market, particularly when you compare them to standard savings accounts.

High Interest Current Accounts remain the go-to place for savers looking for the best return, so below is a summary of some of the leading contenders.

Nationwide Building Society - FlexDirect Current Account
5% AER - on balances up to £2,500.

Pros - The highest rate on the market. No monthly account fee.
Cons - Rate drops to 1% after the first 12 months. To qualify, £1,000 must be paid into the account each month.

TSB Bank - Classic Plus Account
5% AER - on balances up to £2,000 (rate will reduce to 3% AER on 04/01/2017).

Pros - No monthly account fee or introductory rate. This account offers 5% cashback on the first £100 of contactless payments every month until December 2016.
Cons - To qualify, £500 must be paid into the account each month and you must register for internet banking and paperless statements and correspondence.

Tesco Bank - Current Account
3% AER - on balances up to £3,000.

Pros - No monthly account fee, monthly funding requirement or introductory rate. Tesco Clubcard holders will earn additional points on money spent on the debit card for this account.
Cons - None.

As always, if you need any help with your savings or want to discuss this further, please call us on 0800 321 3581, we’d love to hear from you.