Any recommendations for a good account for bills...

FIRSTTIMER

I bank with First Direct but want to separate my bills from spending. Looking for one without a fee....is the Tesco one any good? Bills are approx. 1100

eskbanker

There are a couple of accounts (NatWest and Santander, maybe other too) that offer cashback on bills for a small monthly fee, but it may be more cost-effective for you just to have a straight interest-paying account such as the Tesco one, or a higher-interest one like Nationwide's FlexDirect. Check out http://www.moneysavingexpert.com/banking/compare-best-bank-accounts for the options and weigh them up according to what your bills are....

YorkshireBoy

Tesco would pay 3% AER on the "bills" money until you spend it. Nationwide would pay 5% AER, but only for a year.

If your bills are paid shortly after payday, then perhaps another FD current account? Apparently it's very easy to shift DDs internally, ie without contacting the originators.

Why discount those accounts with a fee? Depending on what your "bills" are, the Santander Lite account could turn you a profit greater than Tesco's interest...even after the £1 per month fee.

Anthorn

Good if Direct Debits and/or Standing Orders bounce: Virgin Money Essentials Current Account no charge for bounced DDs and SOs. 0.75% AER.

If no debit card is wanted: Coventry Building Society Money Manager savings account: SOs and DDs but £10 charge if they bounce, Worldwide ATM cashcard, 0.10% AER.

PeacefulWaters

Depending on the amounts, and assuming an average balance of £500 and no risk of inadvertent overdraft, I'd be comparing Sanrander 123 Lite with Halifax Reward.

cheesetoast

If you can stomach a £3 monthly fee, the NatWest Reward account is great for bills. 3% cashback on bills paid by direct debit, which you'll easily make back the fee and more in most cases.

It would be worth getting out of the "I don't want to pay a fee" mentality, as you may well be screwing yourself over.

Marchitiello

NatWest/RBS rewards accounts are great for bills.

I have a RBS rewards that I use just for that and make about £10 per month at net of the £3 monthly fee.
I get the cashback on the following bills:

Council tax
Water
Gas & electricity combo
Mobile
Sky tv & Internet
BT Sport subscription

I only transfer the money in a day before the DD is due, and cannot see how an interest paying account would be better for this as the 3% or 5% interest are per year, not daily....

I also run a Barclays Blu Rewards as I have a mortgage with them and again get some money every month.

No_6

If I got £10 a month for DD,s I would look at WHAT I am spending !
Just saying ! my house bills never give that amount.


6

Marchitiello

No_6 wrote: »

If I got £10 a month for DD,s I would look at WHAT I am spending !
Just saying ! my house bills never give that amount.


6

Large proportion of it is council tax (London borough) and gas/electicity ( I have a brand new top of the range eco boiler and all my lights are now LED). All depend on house size and location.
Only extravagance is sky family tv package and BT sport, but I have three kids and I like my football.. I was already spending that much (actually, I was spending more on electricity and gas before the LED and Boiler conversion), so the rewards cashback is all good. As far as the house bills are more then £100 per month, the reward fee makes sense.