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  • FIRST POST
    • Special_Saver2
    • By Special_Saver2 6th Dec 15, 1:19 PM
    • 1,088Posts
    • 3,670Thanks
    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 15
    • Westie983
    • By Westie983 5th Oct 16, 5:44 AM
    • 3,842 Posts
    • 14,003 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 2017 #16 Total £22,555/£12,000 = 187.95%
    Sealed Pot Challenge ~ 11 #97 Total (£410) + £0.00/£800 = 51.25% ( x 11)
    Xmas 2017 £1 a Day #6 Total £400/£365 = 109.58%
    Virtual Sealed Pot #1 Total £1,600/£1,800 = 88.88%
    £2 Savers Club 2017 #3 Total (£1,450)+£50/£2,000 = 75.00%

    Total £26,465/£16,965 = 155.99%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • Special_Saver2
    • By Special_Saver2 15th Oct 16, 11:43 PM
    • 1,088 Posts
    • 3,670 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
    • 7,484 Posts
    • 4,870 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
    • 5,434 Posts
    • 4,681 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
    • 468 Posts
    • 368 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
    • 7,484 Posts
    • 4,870 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.....
    • Eco Miser
    • By Eco Miser 4th Mar 17, 11:52 PM
    • 3,181 Posts
    • 2,948 Thanks
    Eco Miser
    We're now in March, and the January interest drops are still marked as forthcoming, rather than the accounts in question being moved to the new rate.
    Is the first post no longer being updated? If so, I'll stop pointing people to it.
    Eco Miser
    Saving money for well over half a century
    • Special_Saver2
    • By Special_Saver2 5th Mar 17, 7:52 PM
    • 1,088 Posts
    • 3,670 Thanks
    Special_Saver2
    Hi Eco Miser,

    I have updated the first post of this thread with all the forthcoming changes now shown as having happened!

    SS2
    • Eco Miser
    • By Eco Miser 6th Mar 17, 4:19 PM
    • 3,181 Posts
    • 2,948 Thanks
    Eco Miser
    Thanks Special_Saver2, I'll keep pointing people here when they complain that interest rates are negligible.
    Eco Miser
    Saving money for well over half a century
    • eskbanker
    • By eskbanker 5th May 17, 12:20 AM
    • 5,818 Posts
    • 5,711 Thanks
    eskbanker
    5% on... £2,000 lump sum plus £1,300 per month (£419.34 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). 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 (£64.61 interest)... Norwich & Peterborough BS Gold Savings account (£250 per month, earns £64.61 interest)
    .

    3% on... £21,000 lump sum
    plus £400 per month (£791.48 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), TSB Classic Plus current account (£1,500 lump sum, earns £45 per year), Santander Regular eSaver (£200 per month, earns £38.83 per year)
    Originally posted by Special_Saver2
    Unless I'm missing something, the totals at each level no longer reconcile with the actual accounts listed in each section, after the main text was adjusted to reflect all the changes over the past 6-12 months?

    I make it that the 5/4/3% lump sums should be £0, £0 and £22,500 respectively, and the regular savers £1,300, £250 and £600.
    • eskbanker
    • By eskbanker 7th May 17, 11:15 AM
    • 5,818 Posts
    • 5,711 Thanks
    eskbanker
    Another change worth adding is the reduction in BoS Vantage to 2% from 11 June 2017, after which 3%+ interest on lump sums will be very slim pickings!
    • Special_Saver2
    • By Special_Saver2 7th May 17, 10:49 PM
    • 1,088 Posts
    • 3,670 Thanks
    Special_Saver2
    Thanks, I have updated the first post of this thread accordingly (and removed the Bank of Scotland account given the imminent interest rate drop).

    I have also updated the Santander Regular eSaver (for 123 or Select customers) from 3% to 5% for new account holders who are eligible to open the higher interest version.

    SS2
    Last edited by Special_Saver2; 07-05-2017 at 10:53 PM.
    • Stressmonkey
    • By Stressmonkey 6th Aug 17, 12:47 AM
    • 3 Posts
    • 3 Thanks
    Stressmonkey
    When to stop paying into eSavers
    Hi - I've a 123 account and am going to open a Santander eSaver as the 5% rate obviously beats the 1.5% current account rate. But as it's a regular (monthly) saver only the first £200 attracts the annual 5% with each subsequent payment earning a little less and the 12th would only be in the eSaver for a month so would (and correct me if I'm making daft assumptions) only attract one twelfth as much. If I had well over the £20,000 limit gathering 1.5% interest it wouldn't matter, but like most 123 customers, I don't, though I do have enough to cover 12 x £200.

    So what is the cross over point at which I would make less interest on my £200 transfer than if I'd left it in the 123 account at 1.5%?
    ie how many of the max 12 payments would be worthwhile?

    If you could "show your workings" that would be ideal as I also want to make use of Nationwide's 5% / £250 per month eSaver.

    Thanks for help and patience in equal amounts
    • darkidoe
    • By darkidoe 6th Aug 17, 1:52 AM
    • 886 Posts
    • 1,010 Thanks
    darkidoe
    Hi - I've a 123 account and am going to open a Santander eSaver as the 5% rate obviously beats the 1.5% current account rate. But as it's a regular (monthly) saver only the first £200 attracts the annual 5% with each subsequent payment earning a little less and the 12th would only be in the eSaver for a month so would (and correct me if I'm making daft assumptions) only attract one twelfth as much. If I had well over the £20,000 limit gathering 1.5% interest it wouldn't matter, but like most 123 customers, I don't, though I do have enough to cover 12 x £200.

    So what is the cross over point at which I would make less interest on my £200 transfer than if I'd left it in the 123 account at 1.5%?
    ie how many of the max 12 payments would be worthwhile?

    If you could "show your workings" that would be ideal as I also want to make use of Nationwide's 5% / £250 per month eSaver.

    Thanks for help and patience in equal amounts
    Originally posted by Stressmonkey
    You will always make more interest in the regular saver earning 5% interest than leaving it in the 123 earning 1.5% interest. Just following your example to say the 12th payment being in the eSaver for only a month, earning only 1/12 of as much of the interest (5%), the alternative of it being in the 123 account the same time (1 month) would be 1/12 of the current account interest (1.5%). Hence just have a regular standing order to move £200 into the regular saver every month from the current account.

    Save 12K in 2017 # 9 £11,119.65/15 000 (74%)
    Save 12K in 2016 # 8 £19 721.58/12 000 (164.35%) Achieved!
    • Eco Miser
    • By Eco Miser 6th Aug 17, 1:55 AM
    • 3,181 Posts
    • 2,948 Thanks
    Eco Miser
    All 12 are worthwhile, each month £200 earns 83p in the 5% account, but only 25p in the 1.5% account. That applies to the last month as well as the first.

    To be clear, each month's contribution still earns interest at 5% AER, but for a shorter period. Conversely the money not yet in the regular saver each month earns interest at 1.5%.
    Last edited by Eco Miser; 06-08-2017 at 2:01 AM.
    Eco Miser
    Saving money for well over half a century
    • bigadaj
    • By bigadaj 6th Aug 17, 6:32 AM
    • 10,736 Posts
    • 7,025 Thanks
    bigadaj
    The other issue with small amounts in a 123 account is the monthly fee, if this isn't covered by cashback then it will reduce your effective interest rate and could mean the account costs you money on small savings.
    • darkidoe
    • By darkidoe 6th Aug 17, 2:38 PM
    • 886 Posts
    • 1,010 Thanks
    darkidoe
    I have abandoned Santander all together and switched to Halifax to get a switch bonus. Unless you have large enough cash balance filling up the 123 and then gaining access to the 5% regular saver, it is not worth the hassle.

    To be honest, the same goes for most of the current accounts who dropped their interest rates to 2%. But we haven't got much choice have we?

    Save 12K in 2017 # 9 £11,119.65/15 000 (74%)
    Save 12K in 2016 # 8 £19 721.58/12 000 (164.35%) Achieved!
    • YorkshireBoy
    • By YorkshireBoy 6th Aug 17, 2:42 PM
    • 29,541 Posts
    • 17,355 Thanks
    YorkshireBoy
    I have abandoned Santander all together and switched to Halifax to get a switch bonus. Unless you have large enough cash balance filling up the 123 and then gaining access to the 5% regular saver, it is not worth the hassle.
    Originally posted by darkidoe
    Switching to 'Lite' wasn't an option then? Not a householder and therefore able to generate some cashback?
    • darkidoe
    • By darkidoe 6th Aug 17, 2:49 PM
    • 886 Posts
    • 1,010 Thanks
    darkidoe
    Switching to 'Lite' wasn't an option then? Not a householder and therefore able to generate some cashback?
    Originally posted by YorkshireBoy
    I am a renter and don't pay household bills. Only cashback would be a mobile sim only deal costing £12 per month which would not generate enough to justify the fee.

    A product not suited to me.

    Save 12K in 2017 # 9 £11,119.65/15 000 (74%)
    Save 12K in 2016 # 8 £19 721.58/12 000 (164.35%) Achieved!
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