Current Account for Sole Trader / Balance £5000

chaotic_j

I'm looking for a new current account, I'm a basic-rate taxpayer; self-employed Sole Trader at the moment using my Halifax personal current account for both personal and business banking.

I'd like to keep the business dealings to the one account.

I normally keep in around £5000 so that I have enough money at short notice to deal with any bills etc.

I've been managing my Halifax current account online, where I also have a websaver. I keep the £5000 in the websaver to get a bit of interest, when I need money to pay bills I transfer from websaver to current account.

Anything above £100 in the current account I transfer to the websaver to maximise interest.

With this in mind I'm looking for a new current account that I can manage online, possibly a savings account too if there is one that pays more than the current account and I can transfer between the two online as with the Halifax.

Would the best be A&L at 6.5%?

Your thoughts please..

noah271007

Have a look at Lloyds TSB as they have vantage account 5% for balances over 5K up to 7K.

https://www.lloydstsb.com

chaotic_j

Sounds good but the problem is after I have paid my bills this £5000 will probably decrease to £3000-£4000 then I wouldn't get the rate.. also if you go above it penalises you, it seems there are a few strings on this Classic Vantage account..

noah271007

Vantage offers the same benefits with classic account or added value accounts but also pays up to 5.00% AER (4.89% Gross). Rates are tiered and variable, 0.10% AER/Gross interest is paid on balances up to £1,000 and you can earn up to 5.00% AER on your whole balance if you keep between £5,000 and £7,000 in your account.