TSB Current Account,

DiegoGarcia

Classic plus account.
I have a question about this account.
It says that no interest is paid on balances above £2000.
So does that mean you have to always have less than £2000 in the account to gain the monthly interest? Or does it mean that if you have £6,700 for example in the account, you will only get the interest for up to £2000?
I am new to the whole investing/saving thing, and very confused, can someone clarify what this means




5% AER/4.89% gross variable interest paid on balances up to £2,000
No interest is paid on balances above £2,000. Interest paid monthly. Pay in min £500/month, register for Internet

steelbru

No, it means you get the stated interest amount on balances between 0 - £2000, but any amount over £2000 gets no interest.

So you can easily hold more than £2000 in this account, but you'd be best moving the excess somewhere where it will gain some interest

DiegoGarcia

Thank you,


Is it best to have several accounts that gain interest, than just having the one? I am completely new to the saving game, and I have currently one ISA maxed out at the moment, I have a spare 15k that I would like to store somewhere to gain as much interest as possible. Should I go down the road of having a TSB with 2k and the rest in somewhere else like the Santander?

Archi_Bald

Having multiple accounts at different banks is certainly a possibility and something many people do. Whether you should do that as well - only you can decide.

castle96

for your next £2500 - Nationwide - 5%
then Santander - 3% on £3k to £20k, ie £17000

Archi_Bald

castle96 wrote: »

for your next £2500 - Nationwide - 5%
then Santander - 3% on £3k to £20k, ie £17000

Why skip the 4% and the 'proper' 3% accounts? Why would the Santander 3% AER only be on £17K?

AndyPK

DiegoGarcia wrote: »

Thank you,
I have currently one ISA maxed out at the moment, I have a spare 15k that I would like to store somewhere to gain as much interest as possible. Should I go down the road of having a TSB with 2k and the rest in somewhere else like the Santander?

Yes get a santander. You get interest on upto 20K


Good interest at nationwide will only last 1 year.

Other options are Bank of Scotland vantage Interest on 5K per account.

jimjames

AndyPK wrote: »

Yes get a santander. You get interest on upto 20K


Good interest at nationwide will only last 1 year.

Other options are Bank of Scotland vantage Interest on 5K per account.

Tesco 3% on £6k.
Lloyds 4% (on ?)

I'd fill those before Santander as the £2 fee will reduce the rate you get on smaller amounts.

eskbanker

jimjames wrote: »

I'd fill those before Santander as the £2 fee will reduce the rate you get on smaller amounts.

True, but many put their utility DDs, etc, to a 123 in order to generate cashback that offsets that monthly fee.

AndyPK

I guess it depends on effort v interest.
Someone who has filled their ISA really should have a 123 account !

colsten

AndyPK wrote: »

I guess it depends on effort v interest.
Someone who has filled their ISA really should have a 123 account !

I can't follow that - why would I want a cash ISA before I fill a 12, and all the other interest paying current accounts? Don't try to explain it to me, as I will never understand it whilst interest rates are what they are. If you are in it for the long run, it's S&S ISAs, not cash ISAs, that should be on your radar.