Best Current Accounts Discussion Area

margaretclare

kes74 wrote:

It isn't huge but Cahoot have a permanent £250 interest-free overdraft facility on their current account offering should not be forgotten.

I've found this very handy as it allows me to keep my balance as close as possible to £0 (so that I'm maximising what I have in my savings account), knowing that if I need to draw a couple of hundred at the drop of a hat then I won't be hit for fees or interest.

Hi all

I've had a cahoot current a/c for a few years now and have been very satisfied with them. I like the way they do online statements thereby saving on paper. I like the O/D facility of £500, the first £250 of which is interest-free. This isn't for the first year or any limited time.

I've also had an A&L Premier a/c for 'personal' use - haven't got high enough income for the one recommended by Martin. At first there was an interest-free O/D. Then they started charging me interest.

I'm now closing the A&L a/c and will just use cahoot.

I even looked at a couple of the Co-operative a/cs - one has a £6.50 a month fee!! and another only allows £10 O/D.

So I will stick with cahoot. It's all down to experience of this or that bank, whatever works for you personally.

I also like cahoot's interest rates!

Happy Easter to all moneysavers!

Margaret

moneyandmountains

grumbler wrote:

You do not need to swap. Just apply for a new account. However, if you want 4% you must
"agree to pay in a minimum of £2,000 a month (if you agree to pay in a minimum of £1,000 a month you will still earn 3.75% AER* / 3.69% Gross*)".

I don't think that this is the case anymore. Well, unless they have made an error with the interest rates on their web page.
From the Lloyds-TSB web page:

Classic Plus account Regular Monthly Deposit Interest Paid Monthly
Balance AER % Gross % Net %
£2,000+ £1 - £5000* 4.00 3.93 3.14
£1,000+ £1 - £5000* 4.00 3.93 3.14

These interest rates are correct as at 07/02/2005.

moneyandmountains

Assuming that you have a Lloyds-TSB account already (even one with 1UKP in after an account switch!) then it is probably better for a partner to open a Lloyds-TSB Classic Plus account than a A&L Premier Plus.

In the below calculations, the balance is kept at 2500UKP for consistency, the maximum worthwhile balance in the A&L PP acc.

At 4% interest rate for 1000UKP contribution (see previous post), you get an extra 50+50=100UKP for recommending a friend (e.g. partner).

Lloyds: 1.04* 2500 = 2600, plus 100UKP bonus = 2700UKP
A&L: 1.05* 2500= 2625 plus 50 UKP bonus = 2675UKP

Now for people who can't contribute 1000UKP pcm but can contribute 500UKP pcm, the Lloyds interest rate is a naff 0.10% AER for their classic account.
However,
Lloyds: 1.001*2500= 2502.5, plus 100UKP = 2602.5 UKP
A&L Premier: 1.0212*2500=2553 UKP

Here the Lloyds account still wins, with an equivalent interest rate of 4.1%, if the bonus payment is accounted for. Obviously, there may be better choices in the second case, e.g. Citibank. Note: these calculations are made before tax, so a tax bearing account in reality would need a much high interest rate to match the bonus payments.

ndwalsh

All very confusing. I have been with IF for 4 years, using Savings Account & Current account. Again like Koru, their mortgage rate is bad - the rate drop from IF is a blow... Im looking at moving now and am thinking of Citi or A&L. I didnt see any comment from customers on the A&L online banking or customer service. any comments?

koru

ndwalsh wrote:

Im looking at moving now and am thinking of Citi or A&L. I didnt see any comment from customers on the A&L online banking or customer service. any comments?

Note that Citi don't give you a cheque book. So, for me it is going to have to be Lloyds.

I use the A&L Business Banking, and I find the service poor, which also puts me off.

ndwalsh

Just opened a Citi online and will wait and see. I called their call center to see what is was like and i go through to eServe in India. he tells me that there is a £500 free overdraft and I can get a chequebook. I feel this application may not go much further if these turn out to be different... The A&L is no good as at 2500 the interest rate drops, likewise at 5k for the LLoyds... whats happened to british banking - they only make 20bn in profit betweeen the big 4!!

villaneme

grumbler wrote:

Now I know the answer to my question. Just a few days after the first payment both of us received letters confirming £50 credit.

What happens if you stop making "regular" payments to your acount, after receiving the £50?

grumbler

villaneme wrote:

What happens if you stop making "regular" payments to your acount, after receiving the £50?

I think nothing! What can they do now? However, I have not tried yet as I had some reasons to make second transfer next month.

aidankelly

I have a Nationwide Current account at the minute. I'm happy enough with it but am tempted with A+L 5% interest rate. The problem is I use my cash card abroad once a month which is why I chose the nationwide account and I think A+L charge commission on foreign withdrawals. Is it worth changing over?

grumbler

aidankelly wrote:

Is it worth changing over?

I don't think it is worth 'changing over'. Just keep NW account and open another one with A&L. Use NW abroad and A&L in UK while they offer higher iterest rates. Their 5% rate for PP current account lasts only untill 30 June 2006 when it reverts to Bank of England Base Rate less 1% (currently 3.75% gross). Free annual worldwide travel insurance is also a good sweetener now. And 5.35% online saver is good.