Is there a savings account that can be operated like a current account?

Conrad

Anyone know of an account which attracts market rate savings interest that can also be operated like a current account, in particular that allows direct debits being paid out each month?

This is part of a buy to let strategy.

Wouldn't be interested if the rate of interest is too low, say less than 1.5%.

Approx' £18,000 pa will be paid into the account in 12 equal installments.

innovate

Doubt you can do Direct Debits from a savings account.

However, you can presently get current accounts that pay better interest than savings accounts:

1. Santander 123, 3% on balances between £3K and £20K. Costs £2/mth, but also pays cashback. Plus you can get £55 via Quidco for opening the account
2. Lloyds Vantage, 3% on balances between £3K and £5K. You are allowed 3 Vantage accounts.
3. BOS Vantage, 3% on balances between £3K and £5K. Not sure whether you can have more than one of these.

Gromitt

Indeed, spot on innovate, couldn't have said it better myself.

Even including the £2/month charge, you'd get 2.88%, which is higher than any of the instant access accounts out there at the moment.

(3% of 20K = £600. - £24 = £576. 100/20K = 0.005, * 576 = 2.88%)