Any current accounts that have decent savings interest for more than 12 months?

wesley01

I've been looking at getting a new current account and am interested in one that pays 4% interest either in the current account or in a linked savings account.

There are quite a few out there, the problem is that the good interest rate is only for 1 year and thereafter it drops down to a very undesirable amount, from the ones that I have seen anyway.

My question is, does anyone know of a current account/savings account that will pay 4% plus per year for more than 1 year after opening the account?

HappyMJ

wesley01 wrote: »

I've been looking at getting a new current account and am interested in one that pays 4% interest either in the current account or in a linked savings account.

There are quite a few out there, the problem is that the good interest rate is only for 1 year and thereafter it drops down to a very undesirable amount, from the ones that I have seen anyway.

My question is, does anyone know of a current account/savings account that will pay 4% plus per year for more than 1 year after opening the account?

The rates are always variable. Even the ones that pay 3% can change at any time. You always need to shop around to find the best deal.

If you do want certainty then a fixed term deposit over as many years as you require might be an option. 5 year rates pay 3% but you won't be able to access the cash until the end of the term. If rates do go up you may be stuck on what would then be a low rate until the end of the term.

grumbler

wesley01 wrote: »

...
There are quite a few out there, the problem is that the good interest rate is only for 1 year and thereafter it drops down to a very undesirable amount, from the ones that I have seen anyway.

You didn't look hard.

MSE articles:

• Best Bank Accounts
• Top Savings Accounts

LXdaddy

wesley01 wrote: »

My question is, does anyone know of a current account/savings account that will pay 4% plus per year for more than 1 year after opening the account?

The current accounts that pay interest are all "variable" I'm not seeing that they have additional short term bonus interest rates - so the currently quoted rates will exists until they are changed - that may be within the next 12 months or it may be later.


Take a look over in the Savings & Investments board where there is much discussion of current accounts paying 5%, 4% or 3% and regular savings accounts paying 6% or 5%


This thread is very relevant
https://forums.moneysavingexpert.com/discussion/5374614

wesley01

If you know of any, please give examples?

wesley01

I'm not talking about rates being variable. All terms and conditions that I have seen for current accounts with or without linked savings accounts say something like 5% interest for 12 months,reverting to 0.25% thereafter.

eskbanker

wesley01 wrote: »

I'm not talking about rates being variable. All terms and conditions that I have seen for current accounts with or without linked savings accounts say something like 5% interest for 12 months,reverting to 0.25% thereafter.

For the current accounts I'm only aware of Nationwide's FlexDirect having a capped duration of 12 months, which others do you believe have this limit?

Having said that, regular savers will also typically be for 12 months....

Yorkshire_Pud

Tsb. Tsb tsb

wesley01

Others are TSB, Lloyds, First Direct, HSBC, M&S. I did not include any with less than 4% as those are not good enough options, with a few offering 2 or 3 percent.

grumbler

wesley01 wrote: »

Others are TSB, Lloyds, First Direct, HSBC, M&S.

Do you mean regular savings accounts then?
TSB:

Classic Plus Account


High interest, no monthly fees and all the features you'd expect.
5% AER/4.89% gross variable interest paid on balances up to £2,000

Lloyds:

Club Lloyds


Up to 4% AER variable credit interest ...

• £4,000 to £5,000, you'll earn 4% AER / 3.93% gross on it all.

...free if you pay in £1,500 a month, otherwise it costs ... £5 per month

Where does it say anything about "only for 1 year"?!

Anthorn

TSB Classic Plus, credit at least £500 per month
5% on up to £2000

Club Lloyds, credit at least £1500 per month and pay 2 DDs
4% on whole balance up to £5000