Current Account / Savings Account Combo

Cmdr_Bond

I amplanning on switching from Santander to Lloyds, and will be opening both a Classic Plus and an eSaver account (if they will let me ).

I was just wondering if anyone else had opinions as what constitutes a good Current Account / Instant Access Savings Account Combination (that has no delay in transferring funds from one to the other - so 99% likely they have to be with the same bank).

The reason for me choosing Lloyds is the 1.5% offered by the Plus account with the 0.3% (not the best rate, but not the worst either) for the eSaver with the added bonus of SaveTheChange.

it is a pity that the eSaver does not have a cash card, like some of the competition do - but then that is not really necessary if you have instant phone/mobile/online banking to move your money.

gt94sss2

Cmdr_Bond wrote: »

I was just wondering if anyone else had opinions as what constitutes a good Current Account / Instant Access Savings Account Combination (that has no delay in transferring funds from one to the other - so 99% likely they have to be with the same bank).

The reason for me choosing Lloyds is the 1.5% offered by the Plus account with the 0.3% (not the best rate, but not the worst either) for the eSaver with the added bonus of SaveTheChange.

I think the eSaver account pays 1.6% for the first year.

However, these days with Faster Payments there is no need to have current and savings accounts with the same institution.

However, if you want to keep both together and can fund your account with £1000/month have you considered a Halifax Reward current account + a Guaranteed Saver Reward savings account.

Regards
Sunil

Cmdr_Bond

gt94sss2 wrote: »

I think the eSaver account pays 1.6% for the first year.

However, these days with Faster Payments there is no need to have current and savings accounts with the same institution.

However, if you want to keep both together and can fund your account with £1000/month have you considered a Halifax Reward current account + a Guaranteed Saver Reward savings account.

Regards
Sunil

It does indeed, but I was ignoring any "offers" and looking at the base value of the account.

I will look at the Halifax options.

[edit]
Guaranteed Saver Reward drops to Guaranteed Saver after 12 months - interest drops from 2% to 0.5% (still better than Lloyds) - The Web saver Extra looks good though, at 2.5% and 2.7% for Reward Current Account holders - instant access with minimal penalty too.

Interstingly the £5 reward is equivalent to the Classic Plus interest (1.5%) on £333.34. But it is paid whether you are in credit or not, so it balances out quite well.

rb10

Cmdr_Bond wrote: »

Interstingly the £5 reward is equivalent to the Classic Plus interest (1.5%) on £333.34.

Not quite ... look at it over a year.

With Halifax, you'll get £60 net.

The Classic Plus interest rate, as you say, is 1.5% gross, i.e. 1.19% net. To get £60 over the year, you would need an average balance of just over £5000.

jen245

I also have a halifax reward account, getting the £5 a month, and I have an ISA with them that pays 3%, for having the reward account

Cmdr_Bond

rb10 wrote: »

Not quite ... look at it over a year.

With Halifax, you'll get £60 net.

The Classic Plus interest rate, as you say, is 1.5% gross, i.e. 1.19% net. To get £60 over the year, you would need an average balance of just over £5000.

My bad, thanks for the correction.

Cmdr_Bond

So are there any other reasonable combo's worth considering or is it just Lloyds/Halifax?

Of those 2 I think I will probably stick with my original decision to go to Lloyds. Whilst it would still be extra money in my pocket, I will not lose any sleep of the £5 a month as the convenience of some of Lloyds services and the fact I can pay in over the Post Office counter (2 minutes away) is worth it. My closest Lloyds branch is 10 minutes away by bus, and Halifax 20 minutes away by bus.

Braclays offers the same convenience benefit at Lloyds, but with no in-credit interest on the current account, the 0.5% on the e-saving reward doesn't seem as attractive.

zzzLazyDaisy

Have you looked at LTSB vantage account - is a current account but pays 4% interest on balances between £5k and £7k (if you are in that realm it is worth a look).

Also Halifax and LTSB are both part of HBOS - in my experience transfers between the two generally go through as faster payments, so are in the other bank's acc within a couple of hours.

rb10

Cmdr_Bond wrote: »

Of those 2 I think I will probably stick with my original decision to go to Lloyds. Whilst it would still be extra money in my pocket, I will not lose any sleep of the £5 a month as the convenience of some of Lloyds services and the fact I can pay in over the Post Office counter (2 minutes away) is worth it. My closest Lloyds branch is 10 minutes away by bus, and Halifax 20 minutes away by bus.

You can pay in to and withdraw from Halifax current accounts at the Post Office as well.

Cmdr_Bond

rb10 wrote: »

You can pay in to and withdraw from Halifax current accounts at the Post Office as well.

Not accorsding to the Post Office - https://www.postoffice.co.uk/portal/po/jump1?catId=19400181&mediaId=19700174

You can withdraw but not pay in. It is possible that this is a mistake on the PO's behalf though.

rb10

Cmdr_Bond wrote: »

Not accorsding to the Post Office - https://www.postoffice.co.uk/portal/po/jump1?catId=19400181&mediaId=19700174

You can withdraw but not pay in. It is possible that this is a mistake on the PO's behalf though.

It is a mistake on the PO website.

Don't just take my word for it though - it's mentioned on the Halifax website here: http://www.halifax.co.uk/HelpCentre/important-announcement.asp

Halifax wrote:

Can I use any of my Halifax accounts at the Post Office?
Yes. We have deliberately strengthened our relationship with the Post Office following the withdrawal of the agency counter service. Under this arrangement, you can now deposit cash and cheques in Halifax bank and savings accounts at the Post Office. To get started with this service just call us on 0800 028 8162* and confirm your name, address and the details for the account you wish to use, we'll then send you everything you need.

Bank account customers can continue to make withdrawals and check balances using a bank card and PIN. Both services are free of charge.

When you phone them, they will post you a paying-in book. You then include a paying-in slip with any deposit that you make. The same paying-in book can also be used to make deposits to your Halifax account in Halifax, Bank of Scotland and Lloyds TSB branches.

Withdrawals are simply done using your card.