What is the best savings account - non-ISA right now?

Edelman

I need to move a sum of money to a new account - just wondering if there are better bank accounts out there (not current accounts) higher than Interest rate: 1.3% Gross.

It can be online only, which I think this one is anyway.

ColdIron

Edelman wrote: »

It can be online only, which I think this one is anyway.

Which one?

Why don't you want current accounts? They can be better than double what you are looking at now

http://moneyfacts.co.uk/savings/instant-access-savings-accounts/

Edelman

I'm confused about First Direct.
I read everywhere that they give you £100 for creating an account with them.
However, according to the paperwork I now have with them after creating the account, yes they do give you £100, but only if you are not happy, and close it within 12 months.

So in order for me to keep my £100, I have to leave them.

Is this correct?

Archi_Bald

Yep, seems they have withdrawn the payment for the joining, at least for now. It is usually £100 - £125, on top of the leaving £100. I would wait to see whether the joining bonus appears again. May be they have withdrawn it because they are expecting a big influx of new customers for their ISA, who knows.

In any case, though, you must have used their switcher service which closes your old account. Questionable whether this is worth it to get your hands on their Regular Saver because their current account is nothing special. Also, you said you "need to move a sum of money", and the max you can put into the FD Regular Saver is £300 for 12 months.

What is wrong with a good interest paying current account for you sum of money, as Coldiron has already asked?

Edelman

Nope - I didn't. As I had a letter to say "now to switch, ring this number".
So I have the account, but done nothing with it.

Archi_Bald

As I said, if you have not used their switcher service, you will not be able to get the leaving bonus. And worse, you cannot have the Regular Saver account if you close your current account.

***Here's how it works. We'll pay £100 per customer or joint relationship if you close your 1st Account within 12 months of opening it, as long as a monthly salary or income of £1000 or more has been paid into that account for at least six months and you haven't previously had an account with first direct. You must contact us to claim the Service Guarantee prior to closing your account. You'll also need to have transferred your banking to that account using the Current Account Switch Service. We'll pay the £100 into your 1st Account prior to its closure. All accounts with first direct have to be closed and your 1st Account transferred to another bank/building society. Customers who opened their 1st Account before 16 September 2013 may have used our Easyswitch service to qualify.

http://www1.firstdirect.com/1/2/banking/current-account

You have ignored the question twice, but may be 3rd time lucky: What is wrong with a good interest paying current account for you sum of money?

jimjames

Edelman wrote: »

I need to move a sum of money to a new account - just wondering if there are better bank accounts out there (not current accounts) higher than Interest rate: 1.3% Gross.

It can be online only, which I think this one is anyway.

Best rate I'm aware of is 5%. It's a current account but not sure why you are ruling those out?

Edelman

Enough of the comments about "why on earth not use current accounts".

I just hadn't considered it as I thought "current" was just for DD bill paying.

Don't think I will use this FP account, as there is just not benefit to me with it now.

Snooping4Value

Edelman wrote: »

Enough of the comments about "why on earth not use current accounts".

I just hadn't considered it as I thought "current" was just for DD bill paying.

Don't think I will use this FP account, as there is just not benefit to me with it now.

Erm ok. Just to check on your circumstances.

If you are able to set up the direct debits required for most of the high interest paying current accounts, then it is certainly worth your consideration. You quoted 1.3% gross interest for best savings account. The highest interest rates from some current accounts range between 3 - 5%. If you are willing to jump through the hoops a bit, you can get the current accounts.

Unless they are too much of a hassle to you.

I have 3 TSB Classic Enhanced current accounts which pay reasonable interest for very little hassle plus 1 off Santander 1-2-3, which pays interest on a large amount but a bit more hassle.

Archi_Bald

Edelman wrote: »

Enough of the comments about "why on earth not use current accounts".

Sorry for trying to help you to make over twice the interest you get in your 1.3% account. I won't try to help you again.

Edelman

I just never realised you could have multiple current accounts - I naively thought those were for Direct Debits etc.

I now know better!

So I have the NW account with 5%, which looks to be to be actually better than FD or S123. S123 would possibly get me £50-60 in the year after the fee. FD would give me nothing, unless I remember to close it just at the right moment.

However, and this is based on my (poor) knowledge of AERs, if I had £2000 in my account at the end of the year, does that mean I earn £100 for having the account?

How does it work out - or better question - how do you "work it" so you get full value on your AER ?