Best overall interest current account (no cap)

James1715

Best overall interest current account (no cap)

Can anyone advise if there is a better deal. Our average current account balance ~ £20k. In / out each month ranges £5 -10k, average £7k.

The current account is a Nationwide one which previously had a good deal of 5% to £2500 but now pays something like 1% only up to £2500. So we are getting a couple pounds a month which seems a lousy deal seeing as £20k is there 99% of time. I am wondering if there is a current account which offers even a low % on the entire balance, which makes me cumulatively better off, or if I should just forget the interest on this. Alternatively if there any accounts which throw in freebies based on a higher minimum balance.

I know the money could be moved into instant access savings but the outgoings can be variable. So it would be hassle to shift it around each month (plus some have maximum withdrawals per annum etc.). I overpaid the mortgage last year with some of the current account excess to effectively take account of a higher interest payable. I don't like to overpay too much - in case I make a misjudgement, have to ask for some of the 'overpayment' back and they use that as an excuse to increase my overall lending rate (if that makes sense). Maybe I'm paranoid!

Thanks in advance.

Archi_Bald

simple improvement....http://www.santander.co.uk/uk/current-accounts/123-current-account

But there are many other options for better returns on the forum.

grumbler

No cap? You are dreaming.

3% savings & bills cashback: Santander - £20K max.
Add one more Santander or 2x 4% savings on £5,000: Club Lloyds

James1715

Thanks - that seems a good deal. I hadn't even looked at Santander.

Mr_Goodkat

Santander 123 as suggested would be the best single account as you get 3% on up to £20k plus cash back on certain direct debits that could net you an extra few hundred pounds a year, the account does cost £2 a month but well worth it. You could also get the 123 credit card as fee free for one year and will give you cash back 1% on supermarkets 2% on department stores and 3% on fuel / rail travel.


If you can be bothered with multiple accounts then using the likes of TSB Plus (5% on £2k per account) and Club Lloyds (4% on £5k) will see you get slightly better returns for your money.