TSB is launching a new account on 30th March which pays 5% AER interest on balances up to £2,000. It may be a current account but don't let that put you off. You can open up to 2 of these to get 5% AER on £4,000 and you don't need to switch your main current account. Simply pay in and withdraw £500 per month. Setting up standing orders is an easy way to ensure you deposit and withdraw the qualifying amounts each month. These can be usually set up in under a minute online or in branch.
Santander has reduced the number of 123 current accounts (paying 3% AER) that can be opened. They have introduced a new restriction that the second account must be in joint names, therefore for new customers a single person can now only have 1 account rather than 2 and a couple can only have 3 accounts rather than 4.
To see how these accounts compare to other high interest paying accounts, please see the table below.
Current accounts, the new way to save
The savvy savers among you may know of a little trick to get the best returns on the market - spread your money between the top paying current accounts and you could maximise your returns, without switching your current bank account.
High interest current accounts have become the new way to save, as standard savings account rates have plummeted to record lows leaving many savers languishing in poor paying accounts. If you’re willing to use all the tools in your armoury you can earn up to 5% and still have access to your cash.
Here's how to maximise your interest using high interest current accounts (simply click on the savings providers in the table below to find out more)
|
Provider |
AER |
Accounts |
Deposit Per |
Need to Switch |
|
5% |
1 |
£2,500 |
No, just deposit and immediately withdraw £1,000 per month.* |
|
|
TSB (Plus account not launching until 30/03/2014) |
5% |
2 |
£2,000 |
No, just deposit and immediately withdraw £500 per month.* |
|
4% |
2 |
£3,000 |
No, just deposit and immediately withdraw £1,000 per month.* |
|
|
3% |
2** |
£20,000 |
No, just deposit and immediately withdraw £500 per month, and setup 2 Direct Debits.* |
|
|
3% |
3 |
£5,000 |
No, just deposit and immediately withdraw £1,000 per month.* |
|
|
3% |
3 |
£5,000 |
No, just deposit and immediately withdraw £1,000 per month.* |
|
|
3% |
3 |
£5,000 |
No, just deposit and immediately withdraw £1,000 per month.* |
|
|
Overall Rate |
3.19% |
16 Accounts |
Maximum Balance £97,500 |
|
*Setting up standing orders is an easy way to ensure you deposit and withdraw the qualifying amounts each month. These can be usually set up in under a minute online or in branch. The monthly deposit must be from a different account provider.
**The second account must be a joint account.
Using the table above you could open a total of 16 accounts and get an overall rate of 3.19% AER on a deposits totalling of £97,500. If you have over £100,000 and want to know how to get the very best returns please feel free to call on 0800 321 3581.
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