Can you suggest a good current account that pays interest?

EltonJohnFan

Hi all,

I currently have a basic bank account with Natwest/RBS and they've recently decided to stop paying any interest at all on most of their accounts which has led me to decide that I have to move current accounts as a matter of urgency. I have looked at a wide range of accounts but all the banks I've spoken to so far don't seem to offer any interest on their current accounts and like Natwest/RBS want you to tie up your money in bonds or open savings accounts etc. I need an account that will offer me a good rate of interest on my current account and one that doesn't require me to pay in at least £1,000 as I'm unfortunately not working at the moment due to being made redundant but when I'm working again meeting the £1,000 minimum wouldn't be a problem.

I prefer the simplicity of only having one account to manage and that is why I need a current account that will do everything I need and give me a fair rate of return on my money too. I don't need any fancy feautures from a bank account as I don't require a chequebook/overdraft etc and my account is always in good standing with a minimum balance of £8,500 and I never have any less than this in my current account. I really appreciate anything you can suggest and would I likely be accepted for a "full" current account seeing that I'm not in work at the moment? I would hate to apply for an account, be refused and then have a negative mark on my file as I've never had any credit or debt in the past, preferring to just pay for things in full.

jen245

Im not sure what the funding requirements are, but have a look at the Lloyds TSB Vantage account. I believe it pays 4% on balances up to £7000 (?), or the only other one I can think of is the Santander account, but you have to pay £1000 per month, and their customer service is shocking!

knightfox

I would get an esaver from Natwest and put the money in their. Most banks no longer pay any interest anyway. Lloyds does for now. Or try Cater allen.

Banks have been attacked over the past few years. So they need to make money somehow.

jinkster

What are the requirements for Cater Allen current accounts (personal)?

Baldur

jen245 wrote: »

Im not sure what the funding requirements are, but have a look at the Lloyds TSB Vantage account. I believe it pays 4% on balances up to £7000 (?), or the only other one I can think of is the Santander account, but you have to pay £1000 per month, and their customer service is shocking!

There is no such thing as a 'Vantage account', Vantage is an addition to LTSB current accounts.

The LTSB Classic account has no minimum funding requirement and pays no interest but Vantage can be added to it, in order to qualify for interest at tiered rates (up to 4% AER on balances between £5,000 & £7,000) but, in order to receive the tiered interest, minimum funding of £1,000 per month is required.

slopemaster

But if you wanted the Lloyds-TSB a/c to pay you 4%, you could keep your other a/c, and just transfer £1000 in, and back out, each month to satisfy the funding requirement. See thread about those specific accounts. It sounds ideal for what you want to do.

Whatever you do, don't be tempted to open the Santander account which pays 5%.
I have £3500 in mine, with access blocked to it - they will not allow us to get at our money and are declining all DDs. Santander's service is not just bad, it is Kafkaesque - they will not tell us what the problem is.