Santander preferred in Credit Account

rh22uk

Ok so I have this account because I liked the idea of 5% interest on blances up to £2500. The thing that gets me, but I may be being really stupid here, is if the interest rate drops to 0.25 or whatever it is if you go over the £2500 mark, how are you ever expected to get 5% interest on £2500 if every month you have to pay in £1000. I could have my balance at £2500 but when i pay in my £1000, I will go over the limit. Is it something to do with your average balance, If I withdraw money so that my current account averages out at a figure up to £2500, is this what im supposed to do??

confused, hope some one can help.

scottishblondie

You will still earn 5% on the 2.5k, it's any balance above that which will earn the low rate. E.g. if you have £3000 in there, 2.5k will earn 5% and the other 500 will be earning at 0.1% or whatever it is.

rh22uk

I knew it had to be something as simple as that. Thank you. Although I do feel a bit silly now. lol

izools

Either that or just transfer out £1000, bringing the balance to £1500, and transfer it back in the next day

(I presume you'd just be using the account to make interest, and not as your standard current account? If you have more cash to put away the Lloyds TSB account pays 4% on balances between £5000 and £7000 : http://www.lloydstsb.com/current_accounts/classic_and_classic_plus_accounts.asp )