Current acc vs Savings acc

It_wasn't_me!

I'm a bit confused so maybe someone can help explain something for me. The Alliance & Leicester current account pays 6.5% interest (up to £2500). The best savings account doesn't get anywhere near this so why doesn't this feature as a best savings account? (My savings never get to £2500!)
Cheers IWM

baby_boomer

You're not alone. Most people don't have savings of more than £1,000 .

The answer to your question is that it's not a savings account as it will come with overdraft facilities, cheque book, cashcard etc. And while many savings accounts may have upper limits of £1m or £250,0000, £2,500 is rather low.

But for people in your situation, there's no point opening savings accounts, apart from the best paying regular savers or ISAs, which pay less than this current account.

The cynical among us would be asking how long Alliance and Leicester are going to keep this loss leader going. But there's no need for you to worry about that until it actually happens.