Current accounts for OAPs

Sulumar

Does anyone know of a reasonable interest-earning bog standard current account suitable for my retired father? His monthly income from various pensions totals less than £1000 pm so most of the promoted accounts are not suitable. The other point is that he can't use a computer for toffee, so a bank with local branches is a must for him.

It strikes me as a little unfair that the retired don't necessarily have access to such accounts, or at least ones which pay more than 0.1%. The best I've seen is the A&L Premier current account at 1.5% AER (not the Premier Direct one)

Thanks for any help.

Mikeyorks

Has he got a Savings account with more than £1k in? That could be transferred into the current account for a day - and then back again?

My parents are in the same boat and their local Halifax branch happily set up the SOs in order they now get 5.12% in the new high interest current account. Their 'feeder' account is a Liquid gold, which pays a pittance - but damned if I can get them to close it. But at least I've persuaded them to keep £2500 in the current account - which is the optimum in that account.

Works best, in these circumstances, if the current account is with the same provider as the Savings - as minimises the 'confusion' for your Dad and equally minimises interest lost, as the money is 'in transit'

Sulumar

Hmm, that might work. Move £1000 from savings for a day then return to savings account? Meanwhile pensions etc come into the current account as well.

I like it! I hope Lloyds TSB agree to something similar as he's already with them and it might save some bother.

Thanks for the idea.

Mikeyorks

Sulumar wrote:

Meanwhile pensions etc come into the current account as well.

........... in which case you should only need to move (£1000 minus £pension) from the Savings account ... and back again !

oldwiring

Beware! Some banks do not pay interest on certain savings products in the month a withdrawak is made. Therefore transfers to and fro would have little point.

margaretclare

The Co-operative Bank. I would have suggested smile, their online bank, but then I noticed that he 'can't use a computer for toffee'. However, he could learn, because a lot of online accounts have better deals.

DH and I at 71 do online banking all the time, and he never touched a computer until after his 60th birthday.

Margaret Clare

baldbloke_2

As a working person whose wages do not top the magical £1000 pcm amount I have simply managed for several years by having a linked Websaver account at the Halifax alongside my current account. The Current account may pay 0.10% but I keep a budgeted minimum in there and transfer everything over and above the minimum I need in to the Websaver at 4.5% (and I also have a Cashcard one paying 4%) on the day I receive it.

I don't see the need for chasing interest-bearing current accounts around the different banks if I can use the linked accounts in this way.

I admit the latest Halifax current account is impressive but next month someone else will offer something different or better and people will be off again in the dance.

This does all involve internet banking but I would never return to branch access banking having seen the benefits of managing accounts online.

If you have a good relationshp with your parents you might consider having them register their account(s) for online access and then managing the transfers for them - printing off a weekly statement for them to see how things are looking.
I do this for my elderly mother and it has been of great value to her.

Mikeyorks

baldbloke wrote:

I don't see the need for chasing interest-bearing current accounts around the different banks if I can use the linked accounts in this way.

I admit the latest Halifax current account is impressive but next month someone else will offer something different or better and people will be off again in the dance. .

Fully agree with your sentiments on not chasing rainbows .. to gain, very little. Most of my stuff is with Halifax, as I find they've got a very complementary set of products. But I have moved to the high interest account, as it seemed silly not to. But it does mean my normal routine of keeping not much more than £50 in my current account, and topping it up regularly from Web savers - has had to change. As it's more beneficial by 0.62% to keep up to £2500 in there. With absolutely no extra effort.

baldbloke wrote:

If you have a good relationshp with your parents you might consider having them register their account(s) for online access and then managing the transfers for them - printing off a weekly statement for them to see how things are looking.
I do this for my elderly mother and it has been of great value to her.

I have made precisely that offer, several times. And would include my sister in the arrangement - to give me 'an audit trail'. But Mum, who's pushing towards 90, likes to 'pop into town and the Halifax' at least once a week. The fact that it's to give her a bit of space from my Dad ..isn't lost on her children :rolleyes: But the offer is there for when she needs it.