Mad Hatters and Money Matters: Tips for saving in wonderland 1 – high interest current accounts

We really are down the financial rabbit

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Courtesy of Cardew Design

hole when current accounts offer higher interest rates than savings accounts while elsewhere countries declare negative rates of interest. But fiscal games are far from most people’s minds. After a long and meagre January full of stormy seas and stock market slumps, I’m guessing that a lot of people are more on the lookout for good news as we go into February.

Well the best of the news is that the savvy saver isn’t in as much trouble as might be thought. It’s true that interest rates in the UK and around the world are not high, but, after losing everything in the credit crunch, banks are desperate to attract customers and their business saving savings. This is the reason for the unusual but useful high-interest current accounts that are now available with a whole range of rewarding bonuses. So …

Tip 1: Get a high interest current account.

The good news is that you can get around twice as much interest from these current accounts as you can from standard savings accounts (the ones that are supposed to offer high interest rates). Generally you need to pay a fee or have a minimum amount of money coming into the account and a couple of direct debits going out each month to qualify, but once you do some of the best financial products around are available to you. Here are two of the best:

Santander 1 2 3 Current Account

Ideal for big savers.

  • 3% interest on balances between £3,000 and £20,000
  • 1%, 2% and 3% Cashback on various bills, depending on type.
  • Deposit £500 per month and have at least two monthly direct debits going out to qualify.
  • £5 account fee taken each month

Club Lloyds Current Account

More interest on smaller amounts.

  • Interest gradually increases with amount in account up to 4% AER / 3.93% gross variable interest on balances from £4000 to £5000
  • Pay £5 fee or deposit £1500 in account every month
  • Get a different benefit every year per account including either 6 cinema tickets, an annual magazine subscription or annual Gourmet Society membership.

So there’s good reason for most working families and people to have at least one of these accounts or their competitors out there. Farewell until I have your next tip.

 

This information is intended as friendly guidance and not professional financial advice. It was correct on the 02/02/2016 but is subject to change.

 

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