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Updated list of Current accounts which pay interest

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chickenboy
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Joined: March 25th, 2017, 9:51 pm

Updated list of Current accounts which pay interest

#41380

Postby chickenboy » March 25th, 2017, 10:11 pm

Hi - I'd like to start a thread to keep us up-to-date with the current best options for sensible interest earning accounts in the UK.
I'd like to focus on current accounts that earn interest (and perks) and regular saver options. I've been in NZ for a few months, so my info might be a little out of date - please feel free to add/correct (if it all gets a bit chaotic I'll try to jump in and refresh the whole list with the updates).

I hope we can all contribute to this list and keep it up-to-date and share the benefit of our combined wisdom...


Current accounts with interest:

Bank of Scotland:
3% on 5K (can have 3), requires £1000 in/out per month

TSB:
3% on 1.5K, requires £500 in/out per month & must select paperless billing
(Perks: some temporary 5% deals depending on when account opened)

Lloyds:
2% on 5K, requires £1,500 in/out per month & 2 DDs
(Perks: free lifestyle benefit, e.g. magazine subscription or 6 cinema tickets)

Nationwide:
5% on 2.5K but only for 1st 12 months, requires £1,000 in/out per month, no DDs
(Perks: access to their regular saver?)

Santander 123:
1.5% on 20K, requires £750 in/out per month + 2DDs
(Perks: 1-3% cashback on selected bills)

Tesco: (currently closed due to high demand)
3% on 3K (can have 2), requires £500 in/out per month
(Perks: useful saver accounts which can create DDs)


Regular Savers:

5% First Direct, £300 pm

5% HSBC, £250 pm, must have HSBC Advance current a/c

5% M&S, £250 pm, must have current a/c and have switched an account to this M&S current account, and have 2 DDs on it

:!:

Stompa
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Re: Updated list of Current accounts which pay interest

#41387

Postby Stompa » March 25th, 2017, 11:12 pm

A quick correction, Santander 123 requires £500 in per month, not £750.

Stompa

mc2fool
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Re: Updated list of Current accounts which pay interest

#41389

Postby mc2fool » March 25th, 2017, 11:22 pm

chickenboy wrote:Santander 123:
1.5% on 20K, requires £750 in/out per month + 2DDs
(Perks: 1-3% cashback on selected bills)

Actually only requires £500 in per month, and there is no "out" requirement ;). There is, however, a £5 monthly account fee.

May I suggest you include links for each entry. http://www.santander.co.uk/uk/current-a ... nt-account

chickenboy
Posts: 15
Joined: March 25th, 2017, 9:51 pm

Re: Updated list of Current accounts which pay interest

#41393

Postby chickenboy » March 25th, 2017, 11:56 pm

(thanks -- good suggestions so far. I'm not allowed to post links properly yet...)
Updated...

Current accounts with interest:

Bank of Scotland:
3% on 5K (can have 3), requires £1000 in/out per month
bankofscotland.co.uk/bankaccounts

TSB:
3% on 1.5K, requires £500 in/out per month & must select paperless billing
(Perks: some temporary 5% deals depending on when account opened)
tsb.co.uk/current-accounts/

Lloyds:
2% on 5K, requires £1,500 in/out per month & 2 DDs
(Perks: free lifestyle benefit, e.g. magazine subscription or 6 cinema tickets)
lloydsbank.com/current-accounts/all-accounts/club-lloyds.asp

Nationwide:
5% on 2.5K but only for 1st 12 months, requires £1,000 in/out per month, no DDs
(Perks: access to their regular saver?)
nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

Santander 123:
1.5% on 20K, requires £500 in/out per month, 2DDs, £5 monthly fee
(Perks: 1-3% cashback on selected bills)
santander.co.uk/uk/current-accounts/123-current-account

Tesco: (currently closed due to high demand)
3% on 3K (can have 2), requires £500 in/out per month
(Perks: useful saver accounts which can create DDs)
tescobank.com/current-accounts/


Regular Savers:

5% First Direct, £5 - 300 pm
firstdirect.com/1/2/savings-and-investments/savings/regular-saver-account

5% HSBC, £250 pm, must have HSBC Advance current a/c
hsbc.co.uk/1/2/savings-accounts

5% M&S, £250 pm, must have current a/c and have switched an account to this M&S current account, and have 2 DDs on it
bank.marksandspencer.com/save-invest/savings-rates/

DrBunsenHoneydew
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Re: Updated list of Current accounts which pay interest

#41909

Postby DrBunsenHoneydew » March 28th, 2017, 3:49 pm

Halifax pays £3 reward each month you pay in £750 or more, pay out at least 2 different direct debits and stay in credit. (technically not interest but treated as after-basic-rate-tax paid interest for practical purposes).
https://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/

The Nationwide gives access to their 5% Flexclusive Regular Saver
http://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits
(but only after a 3-month waiting period, unless you use the current account switching service)

pochisoldi
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Re: Updated list of Current accounts which pay interest

#41950

Postby pochisoldi » March 28th, 2017, 6:24 pm

DrBunsenHoneydew wrote:Halifax pays £3 reward each month you pay in £750 or more, pay out at least 2 different direct debits and stay in credit. (technically not interest but treated as after-basic-rate-tax paid interest for practical purposes).
https://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/


It is not interest - it is classed as an "annual payment", and is liable to be taxed at 0%/20%/40%.
It gets entered in the "other income" bit of your tax return.

Now if the £3 was paid as £1.50 for the first two direct debits paid out every month, then it wouldn't be taxable at all. (This is the revised approach that Barclays took with the current account Blue Reward since December last year).

Stompa
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Re: Updated list of Current accounts which pay interest

#41990

Postby Stompa » March 28th, 2017, 9:33 pm

It's perhaps worth pointing out that there's a regularly updated thread listing Regular Savers here:

http://forums.moneysavingexpert.com/sho ... p?t=608697

Stompa

chickenboy
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Joined: March 25th, 2017, 9:51 pm

Re: Updated list of Current accounts which pay interest

#41992

Postby chickenboy » March 28th, 2017, 9:39 pm

Thanks - will add link to the MSE forum, plus details for Halifax & Barclays rewards.
I've been on similar forums previously (stoozing dot com) and found this kind of expert group tends to be a few steps ahead of MSE... and its worth being a few steps ahead (as demonstrated by Tesco a/c's recently)

didds
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Re: Updated list of Current accounts which pay interest

#42078

Postby didds » March 29th, 2017, 11:37 am

Thois may be off track for this thread but...

My daughter has about 10K coming to here shortly and we are looking at a suitable vehicle for it.

regarding this minimum in (out?) amount each month... she is at college and any work she has is sporadic and certainly nowhere near 6K a year ie £500 a month.

If she were to SO £500 a month to mmy account every month, and a couple of days later I SO it back to her does that coiunt does anybody know, as a £500 a month paid in every month? Or is it just too obvious ? anyone any expereince? We aren;t particularly trying to rip Santabnder off 9or whoever) but at the end of the day the same amount woild be in the account that they are seeking?

cheers

didds

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Re: Updated list of Current accounts which pay interest

#42084

Postby ReformedCharacter » March 29th, 2017, 11:48 am

didds wrote:Thois may be off track for this thread but...

If she were to SO £500 a month to mmy account every month, and a couple of days later I SO it back to her does that coiunt does anybody know, as a £500 a month paid in every month? Or is it just too obvious ? anyone any expereince? We aren;t particularly trying to rip Santabnder off 9or whoever) but at the end of the day the same amount woild be in the account that they are seeking?

cheers

didds


I think that would be fine, it certainly works for the Nationwide FlexDirect account (5% AER) on balances up to £2500 for which I have a SO to pay £1000 in each month and a SO to take it out again 2 days later.

RC

pochisoldi
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Re: Updated list of Current accounts which pay interest

#42103

Postby pochisoldi » March 29th, 2017, 1:00 pm

ReformedCharacter wrote:
I think that would be fine, it certainly works for the Nationwide FlexDirect account (5% AER) on balances up to £2500 for which I have a SO to pay £1000 in each month and a SO to take it out again 2 days later.

RC


If you have two accounts each with a running balance which at least equals the highest deposit requirement*, you can set up standing orders on the same day. I use this mechanism to meet the funding requirements for most of my "savings" accounts.

(* i.e. if you have a account that needs £500 and another account that needs £1000, then you bounce £1000 in each direction).

PochiSoldi

Stompa
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Re: Updated list of Current accounts which pay interest

#42130

Postby Stompa » March 29th, 2017, 2:51 pm

didds wrote:If she were to SO £500 a month to mmy account every month, and a couple of days later I SO it back to her does that coiunt does anybody know, as a £500 a month paid in every month? Or is it just too obvious ? anyone any expereince? We aren;t particularly trying to rip Santabnder off 9or whoever) but at the end of the day the same amount woild be in the account that they are seeking?

It should be fine for Santander. I've frequently made a £500 deposit to Santander from an external account, then sent it back a couple of minutes later, simply to satisfy the monthly deposit condition.

chickenboy
Posts: 15
Joined: March 25th, 2017, 9:51 pm

Re: Updated list of Current accounts which pay interest

#42207

Postby chickenboy » March 29th, 2017, 8:24 pm

This is absolutely fine. I have a set of standing orders which run 1000 through all my accounts on the same day (all these accounts have >1000 in them of course - so if due to bank holidays etc one bank does the SO a weekend late once in a while, its not a problem). If there are accounts which might have less than the required in/out amount in per month, best to do it manually once a month (e.g. the Halifax and Barclays rewards mentioned above).

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Re: Updated list of Current accounts which pay interest

#42229

Postby paulnumbers » March 29th, 2017, 10:05 pm

I find this site useful for regular savers and high interest current accounts...

https://www.bankaccountsavings.co.uk/

chickenboy
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Joined: March 25th, 2017, 9:51 pm

Re: Updated list of Current accounts which pay interest

#42497

Postby chickenboy » March 30th, 2017, 8:21 pm

paulnumbers wrote:I find this site useful for regular savers and high interest current accounts...
bankaccountsavings.co.uk/


- wow great site!

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Re: Updated list of Current accounts which pay interest

#42616

Postby Stompa » March 31st, 2017, 1:06 pm

Just had an email from Santander saying that the rate on their Regular eSaver is increasing from 3% to 5% on April 3rd. Wonders will never cease!

Stompa

DrBunsenHoneydew
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Re: Updated list of Current accounts which pay interest

#42625

Postby DrBunsenHoneydew » March 31st, 2017, 1:27 pm

Stompa wrote:Just had an email from Santander saying that the rate on their Regular eSaver is increasing from 3% to 5% on April 3rd. Wonders will never cease!
Stompa


Indeed, same here.
So I wonder what will happen next? Another reduction in rate on the Current Account and this is a pre-emptive strike to reduce the exodus that would occur.

chas49
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Re: Updated list of Current accounts which pay interest

#42642

Postby chas49 » March 31st, 2017, 2:13 pm

Not shown on the website yet though. Is it for existing Reg eSaver account holders only or should I open one today :) ?

edit: Blimey - I decided to open one online, got the page saying we'll let you know within three working days. Went to my email and there were three emails from Santander - thanks for applying, your a/c is open, and here's a reminder of phone banking etc. Off to get the wife to do the same....

mc2fool
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Re: Updated list of Current accounts which pay interest

#42695

Postby mc2fool » March 31st, 2017, 4:54 pm

chas49 wrote:Blimey - I decided to open one online, got the page saying we'll let you know within three working days. Went to my email and there were three emails from Santander - thanks for applying, your a/c is open, and here's a reminder of phone banking etc.

Blimey indeed -- that they now let you open the Regular eSaver online! Up until three weeks ago you could only open one by phone or in branch!

chickenboy
Posts: 15
Joined: March 25th, 2017, 9:51 pm

Re: Updated list of Current accounts which pay interest

#42773

Postby chickenboy » March 31st, 2017, 9:57 pm

Updated:


Current accounts with interest:

Bank of Scotland:
3% on 5K (can have 3), requires £1000 in/out per month
https://www.bankofscotland.co.uk/bankaccounts

TSB:
3% on 1.5K, requires £500 in/out per month & must select paperless billing
(Perks: some temporary 5% deals depending on when account opened)
http://www.tsb.co.uk/current-accounts/

Lloyds:
2% on 5K, requires £1,500 in/out per month & 2 DDs
(Perks: free lifestyle benefit, e.g. magazine subscription or 6 cinema tickets)
https://www.lloydsbank.com/current-accounts/all-accounts/club-lloyds.asp

Nationwide:
5% on 2.5K but only for 1st 12 months, requires £1,000 in/out per month, no DDs
(Perks: access to their regular saver?)
http://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

Santander 123:
1.5% on 20K, requires £500 in/out per month, 2DDs, £5 monthly fee
(Perks: 1-3% cashback on selected bills)
http://www.santander.co.uk/uk/current-accounts/123-current-account

Tesco: (currently closed due to high demand)
3% on 3K (can have 2), requires £500 in/out per month
(Perks: useful saver accounts which can create DDs)
http://www.tescobank.com/current-accounts/


Regular Savers:

5% First Direct, £5 - 300 pm
http://www1.firstdirect.com/1/2/savings-and-investments/savings/regular-saver-account

5% HSBC, £250 pm, must have HSBC Advance current a/c
https://www.hsbc.co.uk/1/2/savings-accounts

5% M&S, £250 pm, must have current a/c and have switched an account to this M&S current account, and have 2 DDs on it
http://bank.marksandspencer.com/save-invest/savings-rates/

5% Nationwide Flexclusive, £1 - 500pm, must have current a/c (various criteria but FlexDirect is included)
http://www.nationwide.co.uk/products/savings/our-savings-accounts/all-savings-accounts

Maybe 5%? Santander, £200pm (emails to some customers suggest this may increase to 5% from April 3rd). Currently still says:
Receive 2.50% for 12 months (or 3.00% if you are 123 World or Select customer -- I suggest you wait until the 3rd)
http://www.santander.co.uk/info/savings/savings-range


Reward Earners:

£3/pm Halifax Reward Current ac, must have £750 in/out per month + 2 DDs
https://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/

£4/pm Barclays Current ac with Blue Rewards, must have £800 in/out per month + 2 DDs
(Note: there is a £7 pm reward, minus the £3 pm fee)
http://www.barclays.co.uk/CurrentAccounts/BarclaysBankAccount


Useful Sites

https://www.bankaccountsavings.co.uk/ - calculate interest earnings & see requirements
http://forums.moneysavingexpert.com/showthread.php?t=608697 - MSE Regular saver thread


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