Banking options with easy access + interest

HampshireH

I am looking to close my Santander Lite account and need a replacement which pays interest of some kind (as opposed to none)

I already have the following to maximise my savings;

HSBC advance (main account for every day use £1750 pay in requirement) and their 5% 12month saver product opened end Nov.

2 x tesco 3% accounts with 3k in each (old accounts so no DD requirements)

1 x Raisin (starling) account with the 1k locked away on a 1 year fixed.

1 x Natwest rewards account as our "house account" which offers cashback on all bills.

I have about 2.5k to put in an easy access account with the aim of saving between 400-600 a month into it, give or take a few expensive months. Anticipate this level of saving for 12-18 months.

I'm looking for minimal DD requirements (can only have 2 going from a new account max) and easy access but with a decent enough standard of customer service.

Any recommendations?

frolic

Nationwide FlexDirect current account plus their Regular Saver, both at 5%.

HampshireH

Thankyou. That looks like a good shout.

Is there any negatives to having so many accounts open with smaller balances in?

eskbanker

frolic wrote: »

I will close the FlexDirect account when the 5% interest rate expires.

Keeping it open beyond the introductory 5% period preserves ongoing eligibility for their 5% regular saver so personally I would (and did!) think twice about whether to close the FlexDirect....

binaryuniverse

HampshireH wrote: »

Is there any negatives to having so many accounts open with smaller balances in?

Maintenance, basically. But if you can get it all automated, it's fairly easy to monitor.

PRAISETHESUN

Another option would be the TSB Classic Plus account, which pays 5% on the first £1500. I wouldn't recommend you use it as your primary account, particularly in light of the recent bad press they've gotten over their on-going IT problems, but if you want to stash some money away and not need to touch it in a hurry it's a good bet. Otherwise banks that have an associated 5% regular saver (HSBC Advance, Nationwide, M&S Bank and First Direct) are probably also worth getting.

It can be a bit of a faff to set everything up, but the majority of the minimum pay ins and direct debits can be automated, so you only need to log in monthly to skim off the interest. The only other potential issue is the hit to your credit file when you open up multiple accounts, particularly if they are opened in quick succession, but if you won't need to make an important credit application in the near future then I'd say go for it.