Current account that pays interest but doesn't require DD/min monthly deposit

JW149

Hi there. I have trawled MSE to find a straight forward bank account but cant find one. I am not looking for any frills, I just want in credit interest and to not have to set up monthly DDs or commit to a minimum monthly deposit. I don't use overdraft. Can't find a thing. Call me old fashioned... it's all too frilly these days. Anyone know of anything that fits?

Archi_Bald

All interest paying current accounts have pre-reqs, such a minimum monthly deposits and DDs. Anyone having money to save should not find these pre-reqs difficult to meet - see the forum threads about the respective accounts for more information.

tanith

You'll be hard pressed to find such a thing, the banks expect something back for giving the interest.

Zanderman

JW149 wrote: »

... I just want in credit interest and to not have to set up monthly DDs or commit to a minimum monthly deposit. ...?

As Archi Bald says the DD and pay-in requirements aren't difficult to meet.

Remember that the minimum monthly pay-in is literally just that - a pay-in - you can take it out again immediately so you don't need extra money for it.

And the DD's can be to your own accounts elsewhere (though it has to be a particular type of account elsewhere!) - so you can pay those back in again too.

It's easy. Just needs a little planning. And essential if you want interest.

YorkshireBoy

JW149 wrote: »

I just want in credit interest

Would you be happy with 0.1%?...because that's the most you'll get without regular monthly funding.

and to not have to...commit to a minimum monthly deposit.

Is that because you don't actually draw a monthly income, ie no salary, pension, or benefits?

JW149

Thank you for your replies. That's right, YorkshireBoy, no salary/pension/benefits. I am a housewife who gets the odd bit of cash here and there. I manage my money proactively and save most of this e.g. the First Direct Savings a/c 6%. But I also want to hold a small amount in a current account for easy access. My husband's bank account is the one we use for DDs as he brings in the income. He can't shell out a monthly 'salary' for me on the scale required for the accounts I've seen though. For this reason, it is, actually, not easy for me to commit to the £500+ monthly pay-in requirements or to set-up DDs on my account. If only the First Direct current account paid interest I would be fine. But it doesn't so I am looking for a simple solution that I wont need a cold compress for each time I try and work out what is going where and why.

molerat

There is no reason why you cannot pay the money from the joint account and pay it straight back.

mgdavid

JW I think you are over-thinking this; if an account requires £500 a month paying in, your husband sets up a SO into your account for the day he gets paid, and you set up an SO for the *same date* from your account back to his. The money moves pretty much instantaneously with Faster Payments.

xylophone

My husband's bank account is the one we use for DDs as he brings in the income.

Have you thought of opening a joint 123 Account?

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

As I understand it, it is possible to use the switching service to switch a sole to a joint account (although not the other way round), or you you simply open the joint account and switch the DDs manually.

I would have thought that a joint account for bill DDs would be important for married couples in so far as were your husband to die, the bill payments would carry on as the account continues in your name only.

As for a simple sole account for you, a TSB Classic Plus pays interest of 5% on up to £2000, requires no DDs and the £500 can be in and out on the same day using internet banking.

Or your husband sets up a standing order to pay the amount in to the account and a standing order to pay it back again to your main account.

jennifernil

If you have enough in the account to meet the minimum funding, just move it out and straight back in again. You could even open a second account with the same bank to facilitate this.

Some of these accounts require a minimum balance to start earning interest, so check that carefully.

Some pay a flat rate, some are tiered.

At £500, the TSB one has the lowest funding and the best rate.

TartanSaver

TSB also accepts internal transfers so you could open a Classic Plus (5% up to £2k) then a basic account with them, and once a month transfer £500 from the classic plus to the basic and back.