Bank Account

Catti

Good morning to everybody.

I wonder if you can help me.

I need to open a bank account to pay a new mortgage. I also need to maximise income by having an account that pays some reasonable interest.

Does anybody have any recommendation please?

Many thanks

grumbler

Catti wrote: »

...I also need to maximise income by having an account that pays some reasonable interest.

Reasonable interest on what? £100? £1000? £10000? £50000?
Also, some accounts simply give you money even if you don't have savings that, depending on the balance, can be more than the potential interest.
Who is your mortgage with? Why do you want a special account for paying it?

MSE article: Bank Accounts

Catti

The amount we have is around 10k building up to about 30k in 2 years. I don't think it is a special account that I need, it just needs to pay bills on direct debit. The account I have at the moment doesn't pay bills and the interest rate is so tiny that it's not worth bothering with.

I guess a reasonable rate is 3%. I have no idea really.

grumbler

And the mortgage is with... ??

Direct debits and good interest are a little contradicting requirements. Santander 123 was a good account for both with 3% interest and cashback on DDs, but possibly isn't anymore after the monthly fee shot up from £2 to £5. ATM it's the only account paying decent interest on £10K. Do your maths. With other banks you'll have to split this amount and jump through hoops, but can earn up to 6%.

Another bank paying cashback on DDs is Natwest.

xylophone

You might consider a sole and a joint Club Lloyds account - both need a couple of DDs but the monthly pay in can be cycled between the two.

You could each open a couple of Tesco current accounts to receive any money that you are setting aside monthly. Once you reach £12000 you can look at other interest paying current accounts.

If you are short of DDs, if you each open a couple of Tesco savings
accounts you can set them up on these.

[Deleted User]

But who is the mortgage with?!!??

Catti

The Leeds building society

grumbler

This can't make any difference then.

minimike2

How much is the mortgage balance? Was an offset mortgage not discussed with this level of savings?