Maximising interest on £10,000

Trow

I've been very lax, and currently have £10,000 in an account not paying very much.

I was contemplating how to maximise interest. It seems that current accounts are a better option at the moment than savings accounts or ISAs.

I was thinking of:

Continuing with my Halifax account £5 per month
Opening a Clydesdale Bank 4% account (I have a current account with them, so should be able to transfer the account rather than have to go through switching)
Opening a Nationwide 5% account (and switch)
And possibly opening up a regular saver account on top.

Then setting up standing orders between accounts to meet the minimum income rules.

Is this feasible? Do they allow bank transfers from external accounts to meet the minimum income rules? Are there other better options for the money?

This is probably really basic stuff anwered elsewhere, but I have looked and couldn't find the answer.

eskbanker

Trow wrote: »

Is this feasible? Yes

Do they allow bank transfers from external accounts to meet the minimum income rules? Yes

Are there other better options for the money? None that spring to mind, the 5% and 4% are the best rates around just now in this market. Some say that they have multiple FlexDirects all paying 5% but theoretically it's only one that qualifies

These accounts are mentioned fairly often in other threads so there is plenty of additional info around, but not necessarily answering your specific questions!

jimjames

Trow wrote: »

Is this feasible? Do they allow bank transfers from external accounts to meet the minimum income rules?

Yes this works fine, it is just internal transfers that don't count. And you don't even need to have £1000 to do it. £250 transferred in and out 4 times over the month will have the same outcome. Obviously not an issue in your case with £10,000 but for someone who thinks they don't meet the £1000pm criteria it can be done other ways!

typistretired

As you have a Halifax current account why don't you open a Bank of Scotland Vantage current account which you can also view when you are logged in to your Halifax account. However, you have to be on the Bank of Scotland site initially to make the application. You can apply for the account as a classic and add vantage once it is open. You will then receive 3% gross on savings up to £5,000 and the £1,000 transfer could be done between Halifax and Bank of Scotland.

Trow

Great help guys, thank you. I hadn't heard of the vantage account, so I'll check that out too.