5% interest paying current accounts

OceanSound

Does anyone know a current account apart from Nationwide (as I'm already a customer with them for several years) that offers 5% interest?

TSB classic plus cannot be opened online at the mo. The closest I've found is Tesco, and that's only 3%. For that you have to jump through hoops (setup 3 DD's and pay in £750 per month).

The only other alternative seems to be Chip automatic savings. Which starts off at 3% interest if I use the MSE link: https://getchip.uk/land/mse

finding 2 referrals will notch up the interest to 5% interest. Is anyone saving with CHIP auto savings?

eskbanker

I don't believe there are any 5% current accounts other than Nationwide FlexDirect and TSB Classic Plus.

So, if you have money that you're looking to earn 5% on, then the most likely option is the regular saver account bolt-on for current accounts from Nationwide, First Direct and M&S rather than the current accounts themselves, as per https://www.moneysavingexpert.com/savings/best-regular-savings-accounts#bb. Obviously this could also be seen as 'jumping through hoops' but if you're expecting banks to be falling over themselves to give you 5% easily then you may need to lower your expectations!

Personally I'd steer clear of Chip for savings as it isn't covered by FSCS....

binaryuniverse

Yup. TSB and Nationwide are the only 5% payers, at present.

As said above, any other 5% is going to be the regular savers.

Katiehound

Another regular saver at 5%- not mentioned- is with HSBC

18cc

I believe First Direct offer a 5% saver as well

OceanSound

Katiehound wrote: »

Another regular saver at 5%- not mentioned- is with HSBC

Advance and premier account customers only by the looks of it:
https://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Santander also offers a 5% regular saver (if you have a 123 range current/credit card account).

Mchambers

OceanSound wrote: »

Advance and premier account customers only by the looks of it:
https://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Santander also offers a 5% regular saver (if you have a 123 range current/credit card account).

I have got all of these. I am waiting a few months before I can another Nwide 5% account.

I have set up another Nwide account to get the next bonus as/when it happens.

OceanSound

Thanks for the replies everyone.

Here's my situ. I've already opened a Regular Saver with Nationwide in April. Deposited £250 (maximum allowed) in April and June. Will continue to do this on the 01st of each month (for maximum interest) every month for the next 10 months. That part is fine.

However, I have good money sitting in a savings account earning 1.24%. That's a waste. I read about the drip-feed method on the MSE articles (drip-feed calculator is really useful, thanks). That seems the best way to maximise the returns. However, I cannot seem to find a current account paying 5%.

Maybe TSB will get it's act together, and I can go with them. However, going by the message on their website (saying "Coming soon") it seems more like an ad for a movie (not a bank account).

p.s: just seen a reply about nationwide as I was typing this. Existing Nationwide customers can get 5% interest (on current account) apparently.

OceanSound

eskbanker wrote: »

...Obviously this could also be seen as 'jumping through hoops' but if you're expecting banks to be falling over themselves to give you 5% easily then you may need to lower your expectations!

THe 'jumping through hoops' is not my opinion. It was mentioned in an MSE website news article:

Tesco Bank has started accepting applications again for its popular current account, which comes with a guarantee of at least 3% AER interest on up to £3,000 until April 2019 !!!8211; but it's added new hoops to jump through to get the interest.

I figured this was the general consensus.

Personally I'd steer clear of Chip for savings as it isn't covered by FSCS....

Agreed. It'll take more convincing than saying 'your money will be held in a Barclays account, so if CHIP goes under, Barclays is guaranteed under the FSCS..'Our contract will be with CHIP, not with Barclays, so unless there is some guarantee/assurance that Barclays will payout if the unforeseeable happens, I won't be touching CHIP with a barge-pole.

RG2015

OceanSound wrote: »

Maybe TSB will get it's act together, and I can go with them. However, going by the message on their website (saying "Coming soon") it seems more like an ad for a movie (not a bank account).

p.s: just seen a reply about nationwide as I was typing this. Existing Nationwide customers can get 5% interest (on current account) apparently.

TSB say that you can still open an account in their branches.

Nationwide only offer the 5% current account interest on up to £2,500 for 12 months and after that it is reduced to 1% with no further introductory offers for existing or previous customers.

OceanSound

RG2015 wrote: »

....Nationwide only offer the 5% current account interest on up to £2,500 for 12 months and after that it is reduced to 1% with no further introductory offers for existing or previous customers.

Unless customer opens another account in joint names (joint account) :

Under the terms and conditions of this account customers are only entitled to one promotional credit interest rate of 5% AER (4.89% gross pa.). The only permitted exception to receive more than one promotional rate is if the additional account is held in joint names.

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