A separate pot for rent money to earn interest?

Casper7

Hi... I managed to save 3 months of rent money. I pay rent via standing order.

I was thinking that I put that amount in a current account that pays interest on balance.

I will then keep topping it up, so the balance gets replenished to keep getting interest and keep the flow of paid rent.

I chose this to separate my main current account from this, so I avoid going low in balance and miss paying. I am just an old school who likes organising things in advance.

While shopping around I found Sterling Bank offers:
"Earn 3.25% AER* (3.19% gross) variable interest on personal and joint current account balances, up to £5,000 per account. That’s your day-to-day money earning interest, not just savings. Interest is calculated daily and paid monthly."

I have Chase which offers 1% or 4% something in its linked saving, but I just don't want to go in the hassle of moving money between accounts etc.

Do you think my plan is good? is there another bank offers this or beat Sterling's in terms of a current account? Any other advice or tips are most welcome.

Thank you

ColdIron

Casper7 said:

I have Chase which offers 1% or 4% something in its linked saving, but I just don't want to go in the hassle of moving money between accounts etc.

I have never heard of Sterling Bank, do you mean Starling?

You can set up standing orders from the Chase Savings account so no moving money between accounts required

4.10% (soon to be 3.85%) which is a better rate than 3.25% assuming that doesn't get reduced because of the BoE rate cut

gravel_2

Kroo is an option.

Casper7

ColdIron said:

Casper7 said:

I have Chase which offers 1% or 4% something in its linked saving, but I just don't want to go in the hassle of moving money between accounts etc.

I have never heard of Sterling Bank, do you mean Starling?

You can set up standing orders from the Chase Savings account so no moving money between accounts required

4.10% (soon to be 3.85%) which is a better rate than 3.25% assuming that doesn't get reduced because of the BoE rate cut

Yes Starling... 

I did not know I could set up standing order from a saving account! thanks for the tip.

ColdIron

Yes, it's a useful feature of Chase, uncommon elsewhere. They also trigger on the date you say unlike traditional accounts which often wait for weekends and holidays

Casper7

gravel_2 said:

Kroo is an option.

Thanks... It is now at 4.10% after BoE rate lowered. Will consider it as an option.

steven141

There is also the Nationwide FlexDirect account that pays 5% AER on current account balances for a year.