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Which Bank Gives The Best Interest Rate On Saving/Current Accounts?
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# 1
Marv02
Old 30-08-2010, 7:23 PM
MoneySaving Stalwart
 
Join Date: Jun 2010
Posts: 366
Default Which Bank Gives The Best Interest Rate On Saving/Current Accounts?

Hi,

I don't own a credit card, or anything fancy, I'm only 23 and just recently picked up a min paying job, and hate banks to the limits and haven't really dealt with them in some time. (only to pick up my check of have instant money transfers.)

I have some money stashed away (£8,000) and I was just wondering which bank would offer me the best interest, let it be for a savings account or for a current account. I heard some banks can pay up to 10% a month. Is that true? If so, that means 10% of £8,000 = £800... That can't be right, surely.

Can anyone enlighten me on the subject please? Thanks.
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# 2
focae
Old 30-08-2010, 11:47 PM
MoneySaving Convert
 
Join Date: Jan 2010
Posts: 145
Default

You could always try this wonderful new technology......I think it's called searching on the internet......but perhaps someone with a little more nouse could enlighten us?
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# 3
Lokolo
Old 30-08-2010, 11:51 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Apr 2007
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There isn't one bank with the best rates, you have to look around at the time.

Comparison sites are best.

e.g. http://www.moneysupermarket.com/savings/
You only live once so make the most of it!
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# 4
Consumerist
Old 30-08-2010, 11:59 PM
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We all want to be helpful but you could try doing something for yourself to start with.

You hate banks - but want a bank account. What is anyone supposed to say to you.

If you go to the Banking/Saving button at the top of the page, you should be able to get yourself started at least. You can always post again if you want an opinion or advice.
Warning: In the kingdom of the blind, the one-eyed man is king.
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# 5
Marv02
Old 31-08-2010, 2:46 AM
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OK... Let me rephrase that. I've always hated banks, as they've always been a pain in the !!! for me, so I've never paid to much close attention to them. But someone said to me that banks will give you a 5% - 10% interest rate on your money in a savings account... EVERY MONTH. Which is why I pointed out that I have 8k saved up, and if I where to put this in a bank would I really get £400-£800 a month... On interest... As surely this can't be true....

Again, as mentioned, I'm not to bank-savvy, thats why I asked how the whole interest thing works, as I belive it can't be that simple to be making free money.
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# 6
scottishblondie
Old 31-08-2010, 4:00 AM
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It isn't that simple - you will not make 10% a month interest. Whoever told you that is living in a dreamland!! Interest rates are very low at the moment. Even if you found a bank offering 10% that would be the Annual Equivalent Rate (AER) so monthly the rate would only be around 0.8%.

You need to consider what kind of account you want - easy access, fixed term etc. Easy access the best savings rate you can get AFAIK is 2.8% AER. Fixed term (3 years +) I would guess the best rate to be about 4% or 5%.

You can also use high interest current accounts like the Lloyds Vantage, which pays tiered rates of interest up 4% AER gross (before tax, 3.2% net) on a balance of up to £7000. You can get a maximum monthly interest of about £20 with this account. But these accounts have conditions such as having to pass £1000 thru each month (easy to satisfy with a simple transfer) and would require you to pass a credit check and meet their criteria.

To see how much interest you would make with an account you can use the calculator on the Savings section of the MSE main website. Just plug in your figures and it'll tell you how much interest you will earn.
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# 7
asley
Old 31-08-2010, 7:07 AM
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Join Date: Aug 2010
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Default Hi

Search on the internet and it is the best tool
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# 8
Consumerist
Old 31-08-2010, 2:29 PM
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Generally speaking, higher returns means higher risk.

One option is to invest in the stock market through funds to start with; until you have enough to adequately spread your risk of buying individual shares.

Another option might be peer-to-peer lending and saving. Have a look at this MSE thread for a discussion on the matter.
Warning: In the kingdom of the blind, the one-eyed man is king.
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