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  • FIRST POST
    • Special_Saver2
    • By Special_Saver2 6th Dec 15, 1:19 PM
    • 1,042Posts
    • 3,132Thanks
    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.

    With the introduction of £500 to £1,000 tax-free interest from 6th April 2016, I also wanted to see how much interest each option would earn.

    Cashback (non-taxable) and Rewards (taxable)

    Free £60 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, dropping to £36 per year from 1st February 2017)

    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 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... £2,000 lump sum plus £1,300 per month (£519.34 interest)... TSB Classic Plus current account (£2,000 lump sum, earns £100 per year plus at the moment there is also a 5%, maximum £100 per month, dropping to 3% on £1,500 from 4th January 2017), 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). 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... £5,000 lump sum (£264.61 interest)... Lloyds Bank Club Lloyds (£5,000 lump sum, earns £200 per year plus some free cinema tickets or magazines or Gourmet Society membership, dropping to 2% interest from 8th January 2017), Norwich & Peterborough BS Gold Savings account (£250 per month, earns £64.61 interest)
    .

    3% on... £21,000 lump sum
    plus £400 per month (£746.48 interest)... Bank of Scotland Current Account with Vantage option (can open three accounts, £15,000 lump sum, earns £450), 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), Santander Regular eSaver (£200 per month, earns £38.83 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; 15-10-2016 at 11:48 PM.
Page 15
    • Westie983
    • By Westie983 5th Oct 16, 5:44 AM
    • 3,214 Posts
    • 12,573 Thanks
    Westie983
    A few more for you to update:

    Leeds BS Regular Saver was 3.05% now 2.30% including 1.80% conditional bonus

    Cumberland BS Help To Buy ISA was 3% now 2.75%

    Halifax Reward current account was £75 per year now £60 per year (£5 per month)
    Originally posted by RacingDriver
    Issue 3 is still paying 3.05%, was pulled from sale 16th September its issue 4 paying 2.30%, those that still have issue 3 are getting the higher rate, and you can have both issues.
    Last edited by Westie983; 05-10-2016 at 5:51 AM.
    Save 12k in 2016 #16 Total £14650/£12000 = 122.08%
    Sealed Pot Challenge ~ 10 #97 Total (£252) +£13/£300 = 88.33% ( x 10)
    Xmas 2017 £1 a Day #6 Total £34.00/£365 = 9.31%
    Virtual Sealed Pot #1 Total £800/£800 = 100.00%
    £2 Savers Club 2016 #104 Total (£1060)+£386/£2000 = 72.30%

    Total £17195.78/£15465 = 111.18%
    • Special_Saver2
    • By Special_Saver2 15th Oct 16, 11:43 PM
    • 1,042 Posts
    • 3,132 Thanks
    Special_Saver2
    I have updated the first post of this thread with the following information:

    - Halifax Reward current account reward dropping to £36 per year from 1st February 2017
    - Nationwide FlexDirect account entry updated to include a note that posters on pages 225 and 226 of my regular savings thread report that despite the terms and conditions, they have been able to continue getting 5% on this account after 12 months by downgrading and upgrading the account
    - TSB Classic Plus account entry updated to show this will pay 3% interest on £1,500 from 4th January 2017
    - Lloyds Bank Club Lloyds current account entry updated to show this account will pay 2% interest on £1 - £5,000 from 8th January 2017

    SS2
    Last edited by Special_Saver2; 15-10-2016 at 11:46 PM.
    • Biggles
    • By Biggles 16th Oct 16, 8:49 AM
    • 6,952 Posts
    • 4,399 Thanks
    Biggles
    Nationwide FlexDirect account entry updated to include a note that posters on pages 225 and 226 of my regular savings thread report that despite the terms and conditions, they have been able to continue getting 5% on this account after 12 months by downgrading and upgrading the account
    Originally posted by Special_Saver2
    I can confirm this.

    Initially, I was told (via secure message) that it wasn't possible but was given a freefone number (0800 302011). I rang that and it was no problem, I was downgraded to FlexAccount and told that I could then upgrade online the next day back to FlexDirect and qualify for the 5% again, which I've now done.

    Interestingly, after I'd done that, the secure messager seemed to have taken other advice and came back and said, "I'm pleased to say that if you've not had the 5% rate for over 12 months, you're eligible to have it again. I've sent a request to the relevant team to get your interest rate reinstated to 5%. This should be completed within 3 working days."
    • badger09
    • By badger09 16th Oct 16, 11:35 AM
    • 4,266 Posts
    • 3,480 Thanks
    badger09
    Re Nationwide Flexdirect 5%, see my post 81 here. No downgrade/upgrade necessary.

    http://forums.moneysavingexpert.com/showthread.php?t=5424775&page=5
    • ratechaser
    • By ratechaser 16th Oct 16, 3:40 PM
    • 398 Posts
    • 310 Thanks
    ratechaser
    Re Nationwide Flexdirect 5%, see my post 81 here. No downgrade/upgrade necessary.

    http://forums.moneysavingexpert.com/showthread.php?t=5424775&page=5
    Originally posted by badger09
    But in your case, you had already had a 12 month break in getting 5%, whereas what Biggles is saying is that you can pretty much continue straight after your 12 month period through a downgrade and immediate re-upgrade.

    Sounds odd but if it genuinely works, I'll be giving it a try in a months time!
    • Biggles
    • By Biggles 16th Oct 16, 6:09 PM
    • 6,952 Posts
    • 4,399 Thanks
    Biggles
    But in your case, you had already had a 12 month break in getting 5%, whereas what Biggles is saying is that you can pretty much continue straight after your 12 month period through a downgrade and immediate re-upgrade.
    Originally posted by ratechaser
    Though I had already had a 12-month break in 5% interest; had I not, the answer could have been different.....
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