High-interest current accounts

almanak

cattom said:

2% on 2k is not bad. I'm with virgin money. fairly happy with them. the best one I had was the old santander 123 account. where you got interest on your current account, and money back on your utility bills.all for £2 a month. then they increased the monthly charge to £5. and I said good bye.

it was my mistake though, as it is only  for 13-18ys old (123 mini). Is it relatively easy to get credit card with virgin money once you are their customer if you have this experience?

eskbanker

almanak said:

Zanderman said:

almanak said:

Zanderman said:

There is no such awesome 5% offers as before with Nationwide Flex for example.
Did I miss anything?

Which Santander current account gives 2% up to £2k?
(the children's 123 account gives 3%, is that what you mean, or have I missed something?)

http://moneyfacts.co.uk/current-accounts/high-interest-current-accounts

hah, yes I missed it it is for 13-18ys old (123 mini that's correct)

ok, so maybe edit your opening post!

The 2% from Nationwide is only for 12 months, so that's not what it seems at first glance either.

Which just leaves Virgin's 2% on £1k.

my conclusion as well the reason I look at easy access savings account again as there is no such limitation on pay in savings which means you get more anyway if you have more funds

It's not particularly insightful to recognise that high-interest current accounts involve capped interest-earning balances that are significantly lower than those applying to savings accounts, but it's not an either/or choice, in that many will use both in order to maximise interest returns.  Conversely, many will prioritise simplicity over best returns and will seek a single account for ease, even if it's sub-optimal in terms of interest, but this latter approach is obviously anathema to many on a money saving site!

almanak

eskbanker said:

my conclusion as well the reason I look at easy access savings account again as there is no such limitation on pay in savings which means you get more anyway if you have more funds

It's not particularly insightful to recognise that high-interest current accounts involve capped interest-earning balances that are significantly lower than those applying to savings accounts, but it's not an either/or choice, in that many will use both in order to maximise interest returns.  Conversely, many will prioritise simplicity over best returns and will seek a single account for ease, even if it's sub-optimal in terms of interest, but this latter approach is obviously anathema to many on a money saving site!

you are right however there are savings and there is credit score as well. I am not particularly willing to lower it for such a small benefit by setting up a new current account with a bank  I am not completely sure I want to be with and might need another one. I can do it later.

colsten

almanak said:

eskbanker said:

my conclusion as well the reason I look at easy access savings account again as there is no such limitation on pay in savings which means you get more anyway if you have more funds

It's not particularly insightful to recognise that high-interest current accounts involve capped interest-earning balances that are significantly lower than those applying to savings accounts, but it's not an either/or choice, in that many will use both in order to maximise interest returns.  Conversely, many will prioritise simplicity over best returns and will seek a single account for ease, even if it's sub-optimal in terms of interest, but this latter approach is obviously anathema to many on a money saving site!

you are right however there are savings and there is credit score as well. I am not particularly willing to lower it for such a small benefit by setting up a new current account with a bank  I am not completely sure I want to be with and might need another one. I can do it later.

you appear to be overly concerned about your credit score - which is essentially a meaningless number, not looked at by any lender.

almanak

colsten said:

you are right however there are savings and there is credit score as well. I am not particularly willing to lower it for such a small benefit by setting up a new current account with a bank  I am not completely sure I want to be with and might need another one. I can do it later.

you appear to be overly concerned about your credit score - which is essentially a meaningless number, not looked at by any lender.

I don't think I am, however I am determined to get out of renting situation forever so not going to experiment here.

luvchocolate

There was a long thread earlier on the Virgin account...seems you can have up to 6 separate accounts 

almanak

luvchocolate said:

There was a long thread earlier on the Virgin account...seems you can have up to 6 separate accounts 

virgin doesn't seem to have a 'stable policy', not long time ago they had similar interests to other accounts, not more than 0.5-0.6%.Looks like they are trying to get new customers now and they will change this offer very soon. I do not know if other accounts of virgin  will help here.

grumiofoundation

almanak said:

colsten said:

you are right however there are savings and there is credit score as well. I am not particularly willing to lower it for such a small benefit by setting up a new current account with a bank  I am not completely sure I want to be with and might need another one. I can do it later.

you appear to be overly concerned about your credit score - which is essentially a meaningless number, not looked at by any lender.

I don't think I am, however I am determined to get out of renting situation forever so not going to experiment here.

You shouldn’t be concerned about a credit score but your credit history - that is what lenders will look at. Opening one current account will not stop you getting a mortgage.

But if you aren’t willing to open new current accounts of course your prerogative, but means you will have to settle for a bit less interest. 

As an aside how far from applying for a mortgage are you? If greater than a year firstly current account application then will not be an issue and secondly have you got a lifetime ISA (assuming eligible)?

almanak

grumiofoundation said:

almanak said:

I don't think I am, however I am determined to get out of renting situation forever so not going to experiment here.

You shouldn’t be concerned about a credit score but your credit history - that is what lenders will look at. Opening one current account will not stop you getting a mortgage.

As an aside how far from applying for a mortgage are you? If greater than a year firstly current account application then will not be an issue and secondly have you got a lifetime ISA (assuming eligible)?

I got to know about LISA too late unfortunately, not eligible anymore. Seems there is no Help to Buy anymore too. I am happy to open the account with the bank that might potentially help me with building credit or mortgage as well and more stable, I do not see Virgin money as the one so I would need to open the third account too which I want to avoid. 

almanak

colsten said:

h BOS + vantage and you can have 3 of these

but are they counted as 3 separate bank accounts? which means it will lower/worse your credit score/history?

Yes they are counted as 3 separate bank accounts. However, Halifax and BoS share a banking licence and one FSCS cover applies to both banks. 

Assuming they are well managed, holding multiple current accounts will not lower your creditworthiness. Multiple applications in a very short period could, however, temporarily limit your ability to obtain further credit accounts as the hard searches carried out at application time could be seen as desperation for credit. The hard searches will disappear from your credit files within 12 months, so if you are not planning to apply of a mortgage or large loan or credit card, they have no negative impact.

Reward Extras payments for the Reward Current Account with Halifax seem to be a good option
You have to pay in £1500 and either spend £500 with debit card or maintain a balance of £5000+
and then you get £5 each month which means you can make £60 each year which is much higher than any considered options above. 
Was wondering if after some time it is possible to switch (convert) to another Halifax account and that will not be counted as closing and opening next account?