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  • FIRST POST
    • Special_Saver2
    • By Special_Saver2 6th Dec 15, 1:19 PM
    • 1,078Posts
    • 3,561Thanks
    Special_Saver2
    What is the Highest Interest Rate / Cashback / Rewards You Can Get?
    • #1
    • 6th Dec 15, 1:19 PM
    What is the Highest Interest Rate / Cashback / Rewards You Can Get? 6th Dec 15 at 1:19 PM
    People keep asking what is the highest interest rate you can have using a combination of current accounts and regular savings accounts if you are really dedicated and happy to move your money around between current accounts to meet their funding requirements (and where necessary have a few direct debits or standing orders on the current accounts). It is clogging up my Regular Savings thread so I am starting a separate thread to reduce the number of posts about this on the Regular Savings thread.

    If you are a single adult, willing to open multiple current accounts that do not have a monthly charge, and do not happen to live near a building society that offers a particularly good regular savings account that is available to locals only, then the best combination is below. I have also calculated the amount of gross interest per year. If you do not understand the gross interest calculation on the regular savings accounts then look at the explanation in Martin's Regular Savings Accounts page. I have used the calculator on this page to do the interest rate calculations.

    Cashback (non-taxable) and Rewards (taxable)

    Free £48 per year plus up to £18 per year for free for making debit card payments... Co-operative Bank Current Account with Everyday Rewards
    (£800 does not need to stay in the account, can be transferred immediately in and out again as long as you have 4 direct debits, remain in credit (or within your overdraft limit), log in to Online Banking or the Mobile Banking app at least once during the month, and remain opted in for Paperless Statements).

    Free £48 per year... Barclays Blue Rewards (£800 does not need to stay in the account,
    can be transferred immediately in and out again as long as you have 2 direct debits too and you'll get an extra £3 a month off them if you use Barclays for home insurance and another £5 if you have your mortgage with Barclays/Woolwich. There are also a few other lures: 1% cashback on purchases from certain 'Smartspend partners' (Quoted as "GAP, Boots, Waterstones, Toys R Us and many more") and 7% off Expedia bookings). Thanks to Maelwys for this information.

    Free £36 per year... Halifax Reward current account (£750 does not need to stay in the account, can be transferred immediately in and out again as long as you have 2 direct debits too)

    Free cashback if you pay more than £1,200 per year on household bills by direct debit... NatWest Reward Current Account paying 3% cashback for a £3 per month fee (you need to pay more than £1,200 per year on household bills before you make back the £36 annual fee, assuming you are not paying any tax on NatWest's reward payment; you will have to spend more if it is taxed)

    Interest


    5% on... £1,500 per month (£483.86 interest)... Nationwide Flexclusive Regular Saver account (£500 per month, earns £161.29 per year),
    First Direct Regular Saver account (£300 per month for 12 months, earns £96.77 per year gross interest), Marks and Spencer Bank Monthly Saver (£250 per month for 12 months, earns £80.64 per year), HSBC Regular Saver (£250 per month for 12 months, earns £80.64 per year), Santander Regular eSaver (£200 per month, earns £64.52 per year). You could also use the Nationwide FlexDirect account to get 5% on £2,500 lump sum but that only lasts for the first 12 months, so I have not counted it here. (Additional note: posters on pages 225 and 226 of my regular savings thread have informed us that despite the terms and conditions of this account, they have been able to continue getting 5% on this account after 12 months by downgrading and upgrading the account. Click on the 225 link in the last sentence to see more details.)

    4% on... £250 per month (£64.61 interest)... Norwich & Peterborough BS Gold Savings account (£250 per month, earns £64.61 interest)
    .

    3% on... £7,500 lump sum
    plus £400 per month (£302.65 interest)... Tesco Bank current account (can open two of these, £6,000 lump sum total, earns £180), Club Lloyds Monthly Saver (£400 per month, earns £77.65 per year interest), TSB Classic Plus current account (£1,500 lump sum, earns £45 per year)

    If you are part of a couple then some of these options allow joint accounts too (such as the Santander 123 account) in addition to an account each in sole names. If anybody wants to calculate this for a couple with joint accounts then feel free to do so and I can incorporate that into this post.

    It is also worth noting that applying for current accounts with overdrafts can affect other applications for credit (e.g. credit cards) in the short term. It may be best to space out such current account applications by a few months each.

    If you are not sure how this all works then read through the posts in this thread which contain specific questions and answers that should clarify matters.

    SS2
    Last edited by Special_Saver2; 07-05-2017 at 10:50 PM.
Page 1
    • jimjames
    • By jimjames 6th Dec 15, 1:37 PM
    • 11,940 Posts
    • 10,341 Thanks
    jimjames
    • #2
    • 6th Dec 15, 1:37 PM
    • #2
    • 6th Dec 15, 1:37 PM
    Good post but you've missed out the Halifax reward account. Add that in with tsb and you get 12.5% gross on £1000.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • TheTracker
    • By TheTracker 6th Dec 15, 3:28 PM
    • 1,073 Posts
    • 1,069 Thanks
    TheTracker
    • #3
    • 6th Dec 15, 3:28 PM
    • #3
    • 6th Dec 15, 3:28 PM
    Missed the HSBC RS?
    • YorkshireBoy
    • By YorkshireBoy 6th Dec 15, 3:41 PM
    • 29,326 Posts
    • 17,099 Thanks
    YorkshireBoy
    • #4
    • 6th Dec 15, 3:41 PM
    • #4
    • 6th Dec 15, 3:41 PM
    Reg saver interest figures are incorrect.

    Rather than divide by 2 you need to divide by 12 and multiply by 6.5.
    • colsten
    • By colsten 6th Dec 15, 4:17 PM
    • 8,676 Posts
    • 7,319 Thanks
    colsten
    • #5
    • 6th Dec 15, 4:17 PM
    • #5
    • 6th Dec 15, 4:17 PM
    Valiant attempt on getting everything into one place. And apologies for clogging up your RS thread - you are quite right, I should have refrained from debating the virtues of cash ISAs vs best interest rates in that thread.

    A couple of points that haven't yet been raised about your summary:
    1. you refer to "posts above", "post number x" that aren't in this thread
    2. for FTBs, the Halifax HTB ISA should figure on the 'best rates' menu
    • kangoora
    • By kangoora 6th Dec 15, 4:19 PM
    • 490 Posts
    • 334 Thanks
    kangoora
    • #6
    • 6th Dec 15, 4:19 PM
    • #6
    • 6th Dec 15, 4:19 PM
    You could look at this tool/website but it doesn't take into account regular savers however.

    http://www.bankaccountsavings.co.uk/
    • YorkshireBoy
    • By YorkshireBoy 6th Dec 15, 4:24 PM
    • 29,326 Posts
    • 17,099 Thanks
    YorkshireBoy
    • #7
    • 6th Dec 15, 4:24 PM
    • #7
    • 6th Dec 15, 4:24 PM
    Can hold 3 BoS Vantage.
    • jimjames
    • By jimjames 6th Dec 15, 4:45 PM
    • 11,940 Posts
    • 10,341 Thanks
    jimjames
    • #8
    • 6th Dec 15, 4:45 PM
    • #8
    • 6th Dec 15, 4:45 PM
    You could look at this tool/website but it doesn't take into account regular savers however.

    http://www.bankaccountsavings.co.uk/
    Originally posted by kangoora
    It also seemed out of date with tsb accounts that are now only 1 each not 2.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • gt94sss2
    • By gt94sss2 6th Dec 15, 4:47 PM
    • 3,976 Posts
    • 1,836 Thanks
    gt94sss2
    • #9
    • 6th Dec 15, 4:47 PM
    • #9
    • 6th Dec 15, 4:47 PM
    Missed the HSBC RS?
    Originally posted by TheTracker
    I can see it in the 4% list but there is also the 6% version for Advance and Premier customers.

    Regards
    Sunil
    • Jsscmm
    • By Jsscmm 6th Dec 15, 9:06 PM
    • 146 Posts
    • 64 Thanks
    Jsscmm
    BoS vantage should be 15k from 3x accounts at 5k each.
    • Special_Saver2
    • By Special_Saver2 7th Dec 15, 12:06 AM
    • 1,078 Posts
    • 3,561 Thanks
    Special_Saver2
    Good post but you've missed out the Halifax reward account. Add that in with tsb and you get 12.5% gross on £1000.
    Originally posted by jimjames
    Thanks, I have added that in now. The gross amount is £75 per year and the £750 paid in does not have to stay there for more than a few seconds, so I have just counted it as a free £75 per year. Do you know if it is still possible for people to sign up for 2 of these accounts? If so then that is £150 for free.

    Valiant attempt on getting everything into one place. And apologies for clogging up your RS thread - you are quite right, I should have refrained from debating the virtues of cash ISAs vs best interest rates in that thread.

    A couple of points that haven't yet been raised about your summary:
    1. you refer to "posts above", "post number x" that aren't in this thread
    2. for FTBs, the Halifax HTB ISA should figure on the 'best rates' menu
    Originally posted by colsten
    I had mentioned that I was cross-referencing to posts in my Regular Savings thread but to keep things simple I have now removed all the references. I have now mentioned the Halifax HTB ISA.

    Can hold 3 BoS Vantage.
    Originally posted by YorkshireBoy
    Thanks, I have added that in now.

    I can see it in the 4% list but there is also the 6% version for Advance and Premier customers.

    Regards
    Sunil
    Originally posted by gt94sss2
    Sorry, I had forgotten that Advance accounts are now free, have used the 6% version now.


    Wow! Looking back at post 1, you can stash quite a lot of cash in these accounts!
    Last edited by Special_Saver2; 07-12-2015 at 12:15 AM.
    • Archi Bald
    • By Archi Bald 7th Dec 15, 12:32 AM
    • 9,344 Posts
    • 7,387 Thanks
    Archi Bald
    You should be using gross interest rates rather than AER when calculating possible returns. Also mention that some accounts pay different interest %ages, depending on balance.

    Example:

    Santander 123 is 3% AER/2.96% gross if balance is between £3K and £20K. 2.00% AER/1.98% gross if balance is between £2K and £3K, 1% on £1K to £2K, and nowt below £1K. The max interest you can earn before tax is £592, not £600.

    Similar applies to other current accounts.

    All this is probably way too much detail for your summary but you should think of some way to tell people that there is a difference between AER and gross interest, and that your numbers are best case.
    • redux
    • By redux 7th Dec 15, 12:58 AM
    • 16,956 Posts
    • 21,382 Thanks
    redux
    Thanks, I have added that in now. The gross amount is £75 per year and the £750 paid in does not have to stay there for more than a few seconds, so I have just counted it as a free £75 per year. Do you know if it is still possible for people to sign up for 2 of these accounts?
    Originally posted by Special_Saver2
    Unlikely. I just looked on the section to apply for a new account. Two apply buttons for the others, but " You already have this account"

    Whether that still applies to changing status, sole vs joint, I don't know.
    Last edited by redux; 07-12-2015 at 1:52 AM.
    • richy999
    • By richy999 7th Dec 15, 10:04 AM
    • 255 Posts
    • 177 Thanks
    richy999
    Isn't the Halifax reward account account £60 p.a. (12 X £5) ?
    • YorkshireBoy
    • By YorkshireBoy 7th Dec 15, 10:12 AM
    • 29,326 Posts
    • 17,099 Thanks
    YorkshireBoy
    Isn't the Halifax reward account account £60 p.a. (12 X £5) ?
    Originally posted by richy999
    All figures are gross. Non tax payers would claim the £15 via an R40. Maybe Halifax will pay £6.25 a month next year?
    • Sam_J12
    • By Sam_J12 7th Dec 15, 12:27 PM
    • 253 Posts
    • 172 Thanks
    Sam_J12
    For simplicity I have gone for only four accounts. This gets me 5.1% on £9500. I put everything else into a stocks and share ISA and a HTB ISA.

    Nationwide Flexdirect - 5% on £2500
    TSB Classic Plus - 5% on £2000
    Club Llloyds - 4% on £5000
    Halifax reward - £5 per month on no deposit
    • apt
    • By apt 8th Dec 15, 4:06 PM
    • 3,059 Posts
    • 1,718 Thanks
    apt
    In effect the return on the TSB plus account is higher than 5% when you take advantage of the 5% cashback on £100 of contactless payments per month.
    • savings my hobby
    • By savings my hobby 8th Dec 15, 6:14 PM
    • 353 Posts
    • 444 Thanks
    savings my hobby
    Good Job Special_Saver 2 - Thanks
    Earn, Save and Achieve
    • AdamW85
    • By AdamW85 16th Dec 15, 8:12 PM
    • 17 Posts
    • 2 Thanks
    AdamW85
    Hi Special_Saver2, I have been directed to this thread after a post I made earlier today. Thanks for taking the time to write it!

    However I am still struggling to understand exactly how this works. You have various interest rates listed above, each with different accounts next to them. Are you basically saying that to get 6%, I need to open all the accounts you have listed, and so on?

    Obviously I want to get the highest return, so thats 6% from your list.

    My situation
    1. Just over 20k saved
    2. Ability to 'play with' 2k per month moving it between various accounts

    Could you also explain what you mean by: "£300 per month for 12 months, earns £115.96 per year gross interest". Is that £300 is required to be deposited every month and by doing so earning £115 in interest?
    • Jonbvn
    • By Jonbvn 16th Dec 15, 8:52 PM
    • 5,299 Posts
    • 5,568 Thanks
    Jonbvn
    Could you also explain what you mean by: "£300 per month for 12 months, earns £115.96 per year gross interest". Is that £300 is required to be deposited every month and by doing so earning £115 in interest?
    Originally posted by AdamW85
    With regular savers you have to deposit the same amount each month. You cannot withdraw money (from most of them). The interest is paid when the account matures (usually after 12 months).

    IMHO for your case it is best to fill up the highest paying current accounts. Your £2k play money should be moved around to satisfy their minimum deposit requirements.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot
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