Best in credit interest account?

Daneel

My year at Coventry BS has ended and the already low rate is now 0.25% as the bonus 0.85% doesn't apply.

I already have an Alliance and Leicester account at 8% on the first £2.5k and a Lloyds TSB account with 4% on £7k which have standing orders set up to each other to meet the funding requirements for each month.

What I need is an account where I don't have to worry about the balance (if the TSB account drops below £5k the interest rate falls) but gives me a decent rate. The best I've found is cahoot at 1.1%. Is there anything better out there? I usually have a balance of £3-4k.

sloughflint

Daneel wrote: »

What I need is an account where I don't have to worry about the balance (if the TSB account drops below £5k the interest rate falls) but gives me a decent rate. The best I've found is cahoot at 1.1%. Is there anything better out there? I usually have a balance of £3-4k.

Another LTSB account. 3% on those balances or 2% if drops below 3k.

Just set up a SO between the other LTSB account to satisfy funding requirements.

Note that if ever the balance falls below 1k then the rate would be 0.1% until such time as it was above 1k again.

rb10

Keep most of your £3-4k in a savings account, and get £5/month (net) on a current account from Halifax.

cash-magnet

Open up a few more of the tsb 4% accounts.
"Switch" to an Abbey preferred in credit account paying 5% on up to £2500 balance, paying in and then withdrawing £1000 per month. You'd need to switch in another account with a direct debit set up on it to qualify, but any old account will do, or just set up an insignificant direct debit on any other account you have, get abbey to "switch" it but do not get them to close the old account, then just top the old account back up again.

I love playing this game with the banks.

Daneel

rb10 wrote: »

Keep most of your £3-4k in a savings account, and get £5/month (net) on a current account from Halifax.

I have a Tesco savings account (3% currently) with most of my cash that isn't in the above accounts or an ISA.

The reason I have £3-4k in my current account is because my rent, bills and credit card payments come out of there and they vary in size considerably month to month. I don't want to have to watch the balance like a hawk to avoid going overdrawn, so there's a bit of a buffer.

I didn't realise I could open another TSB account, they won't have a problem with that? I always assumed it was one account per person.

I already have a current account at Abbey (I should really close it down, it hasn't been in use for a while) and it appears that the 5% offer is only for new customers.

Daneel

Excellent!

Thanks all

sloughflint

Daneel wrote: »

I didn't realise I could open another TSB account, they won't have a problem with that? I always assumed it was one account per person.

No problem at all.

Daneel wrote: »

I already have an Alliance and Leicester account at 8% on the first £2.5k and a Lloyds TSB account with 4% on £7k which have standing orders set up to each other to meet the funding requirements for each month.

Daneel wrote: »

The reason I have £3-4k in my current account is because my rent, bills and credit card payments come out of there and they vary in size considerably month to month. I don't want to have to watch the balance like a hawk to avoid going overdrawn, so there's a bit of a buffer.

It would therefore make sense to drop your original LTSB account down by 2k to a static 5k and make the one with all the outgoings fluctuate between 5k and 6k so that you get 4% on both accounts.

michaels

Given how generous the LloydsTSB 4% is at the moment has anyone experimented with having multiple accounts? Am thinking 7 would keep things below the magic 7k mark...

Does moving money between LTSB accounts count for the 1k pm funding requirement?!