"Interest"ing Current A/c's

easymoney1964

Is it just me?
Am I just sceptical of current account’s that are free but seem to be paying fairly reasonable interest rates, What’s the catch?

Lloyds TSB Vantage Pay 4% on £5-7k (£1000 funding)
Alliance & Leicester Pay 6% on £2500 (£500 Funding)
Halifax Pay you £5.00 each Month (£1000 Funding)

In theory if you place the highest amount in each account you get the interest rate shown, then you need £1000 to travel around each account every month A to B to C then back again.

Is it worth doing this, then say putting a lump sum in a savings account.

I currently have a Classic cheque account at Lloyds, but I cant have a separate Vantage account I have to upgrade, anyone know why?

D1zzy

Yes !:beer:

masonic

Current accounts are seen as a gateway product, so the banks believe if you have your main current account with them you are much more likely to use their more profitable products. There isn't a catch as such, except having to fund the account every month. You can have 3 Halifax accounts, so you would cycle £1000 from A to B to C1 to C2 to C3.

G_M

Lots of threads on these over on the bank accounts forum....

D1zzy

easymoney1964 wrote: »

Is it just me?
I currently have a Classic cheque account at Lloyds, but I cant have a separate Vantage account I have to upgrade, anyone know why?

You should be able to select "upgrade" online - but sometimes the vantage option seems not to be available. If you drop into a branch they will do it for you - no probs

G_M

Depends how many you have/want. If more than one, branches are getting funny about offering them. Call 0500 179 050 and they'll do it over the phone. If you want multiple Vantage a/cs you need to do themk one by one at 24 hour intervals but they WILL happily do it by phone!

stee-t

You can also add the Abbey current account paying 6% on £2500, at least until the great Santander coming together

td_007

easymoney1964 wrote: »

Is it just me?
Am I just sceptical of current account’s that are free but seem to be paying fairly reasonable interest rates, What’s the catch?

None when you play the game ie make sure the required minimum amount goes into the a/cs.

easymoney1964 wrote: »

Is it worth doing this, then say putting a lump sum in a savings account.

With 2x A&L and 2x Abbey you can have 10K sitting at 6% for a year - no savings a/c today can match this!