What is the Highest Interest Rate / Cashback / Rewards You Can Get?

Archi_Bald

You should be using gross interest rates rather than AER when calculating possible returns. Also mention that some accounts pay different interest %ages, depending on balance.

Example:

Santander 123 is 3% AER/2.96% gross if balance is between £3K and £20K. 2.00% AER/1.98% gross if balance is between £2K and £3K, 1% on £1K to £2K, and nowt below £1K. The max interest you can earn before tax is £592, not £600.

Similar applies to other current accounts.

All this is probably way too much detail for your summary but you should think of some way to tell people that there is a difference between AER and gross interest, and that your numbers are best case.

redux

Special_Saver2 wrote: »

Thanks, I have added that in now. The gross amount is £75 per year and the £750 paid in does not have to stay there for more than a few seconds, so I have just counted it as a free £75 per year. Do you know if it is still possible for people to sign up for 2 of these accounts?

Unlikely. I just looked on the section to apply for a new account. Two apply buttons for the others, but " You already have this account"

Whether that still applies to changing status, sole vs joint, I don't know.

richy999

Isn't the Halifax reward account account £60 p.a. (12 X £5) ?

YorkshireBoy

richy999 wrote: »

Isn't the Halifax reward account account £60 p.a. (12 X £5) ?

All figures are gross. Non tax payers would claim the £15 via an R40. Maybe Halifax will pay £6.25 a month next year?

Sam_J12

For simplicity I have gone for only four accounts. This gets me 5.1% on £9500. I put everything else into a stocks and share ISA and a HTB ISA.

Nationwide Flexdirect - 5% on £2500
TSB Classic Plus - 5% on £2000
Club Llloyds - 4% on £5000
Halifax reward - £5 per month on no deposit

apt

In effect the return on the TSB plus account is higher than 5% when you take advantage of the 5% cashback on £100 of contactless payments per month.

savings_my_hobby

Good Job Special_Saver 2 - Thanks

AdamW85

Hi Special_Saver2, I have been directed to this thread after a post I made earlier today. Thanks for taking the time to write it!

However I am still struggling to understand exactly how this works. You have various interest rates listed above, each with different accounts next to them. Are you basically saying that to get 6%, I need to open all the accounts you have listed, and so on?

Obviously I want to get the highest return, so thats 6% from your list.

My situation

1. Just over 20k saved
2. Ability to 'play with' 2k per month moving it between various accounts

Could you also explain what you mean by: "£300 per month for 12 months, earns £115.96 per year gross interest". Is that £300 is required to be deposited every month and by doing so earning £115 in interest?

Jonbvn

AdamW85 wrote: »

Could you also explain what you mean by: "£300 per month for 12 months, earns £115.96 per year gross interest". Is that £300 is required to be deposited every month and by doing so earning £115 in interest?

With regular savers you have to deposit the same amount each month. You cannot withdraw money (from most of them). The interest is paid when the account matures (usually after 12 months).

IMHO for your case it is best to fill up the highest paying current accounts. Your £2k play money should be moved around to satisfy their minimum deposit requirements.

colsten

Jonbvn wrote: »

With regular savers you have to deposit the same amount each month.

Most will allow you to vary the monthly deposit amounts. One or two have minimum amounts (£25ish) but others will allow you to skip months altogether. Some will allow you to accrue lost months, others won't.

In a nutshell: read the T&Cs. I have 8 regular savers myself, and literally all of them have different T&Cs.