I'm Not Competent at "Best" Bank Account Search.

Saltrams

I'm quite willing to accept my incompetence at searching for what I want. There's a vast amount of info and guidance for what I don't want, or maybe what I want doesn't exist? Probably, I just can't find it. Someone is sure to know and I really hope that someone is willing to share...
I want a bank account that pays interest on the balance, which will be somewhere in the £10k region, probably no more.
One might imagine that isn't too much to ask but apparently it is. Kroo is all I can find. I can find any amount of institutions where I can have an account but in order to get interest I have to open their separate savings account and/or their measly monthly regular savings amount to get a headline rate. And of course I can make my choice of any amount of savings accounts for lump sum deposits but can't use those for current account functions.
I'm very grateful for anyone's input but please know I am aware of how I can juggle funds to auto-transfer from savings to a current account and also to feed regular savers etc. That isn't what I need at the moment.
If I'm asking too much, then the best current a/c with a linked saver that doesn't have the "interest on up to £2.50 and then nothing" rule would be OK.
Many TIA 

SiliconChip

It's not clear what it is that you actually want, but I suspect you're on the hunt for something that really doesn't exist. You will almost certainly need to have separate accounts for current account functionality and to earn interest, it's what millions of people in the UK do and there's no reason why you can't be one of them. 

If you have a lump sum then put it in the best paying savings account. If you want to pay money in over the course of a period then find the best regular saver, which as you have already said may well require you to open a specific current account first. If you pay tax on your savings (which doesn't seem likely unless there are facts you haven't told us) then use a cash ISA. 

grumpy_codger

Saltrams said:

...
I want a bank account that pays interest on the balance, which will be somewhere in the £10k region, probably no more.

What sort of interest? Will you be happy with, say, 0.1% on £10K? Why do you need that much in a current account and don't want to keep most of your money in a linked savings account, making a manual transfer, say, once a month?

Did you read MSE article - Best current accounts ?
I think, Kro is pretty uniquie in terms of the current account interest. Zopa pays 2%, but only for a year, but again, personally I'd rather have 4%+ in some easy access savings account than 3.15% in a current account.

If I'm asking too much, then the best current a/c with a linked saver that doesn't have the "interest on up to £2.50 and then nothing" rule would be OK.

I think Chase with its 5% for a year is the best ATM in this respect.

danny13579

If it HAS to be a current account that pays interest, then I think Kroo is your probably best bet. Very few current accounts pay interest. Fewer now since Starling stopped, they now require you to open a savings space.

I would never leave more than say £100 in a current account. Just enough to cover direct debits, using the debit card for shopping and if I need to withdraw some cash for something or other. 

If you're open to a current account with a linked saver account, then probably Chase. Newbies get 5% (AER variable) on the savings account for the first year which includes a boost of 2.25% AER.

Hattie627

Traditionally, I believe, UK current accounts have not paid credit interest. Most UK current accounts do not charge a monthly service fee which is not the norm in other countries (eg USA).

A few years ago, some UK banks started to pay credit interest on current accounts but always up to a fairly low balance limit. Over time, these deals have been pulled back and there are not many left. Nationwide still pay 5% on up to £1500 for the first year only (Flex Direct account) and would be worth considering if you haven't had this before.

danny13579

Hattie627 said:

 Nationwide still pay 5% on up to £1500 for the first year only (Flex Direct account) and would be worth considering if you haven't had this before.

OP wants an account they can put ≈£10k into. If they go for the FlexDirect, they'd only get 5% interest on the first £1,500 and nothing on the remaining ≈£8,500.

GreenScepter

As others have said, looks like it's either Kroo or iFast if it must be a current account with higher balances. I believe both pay interest monthly.

Kroo offer 3.15% AER on balances up to £500,000.

iFast offer 3.20% AER with "no cap on the interest you can earn".

Personally I wouldn't recommend iFast myself, I found signing up more of a pain compared to other accounts and I had a quite a few payment related issues with them. Your mileage may vary.

gt94sss2

It depends, I also have an account with Kroo but would be hesitant to recommend them personally.

They have an odd history of blocking incoming payments (not just outgoing ones) - as well as things like salary payments - and then asking for things like the date of birth of the person sending you the money! 

born_again

Why do you want to carry such a high balance in a current account. Given you can internal transfer in seconds via app/online from a saving acc with the same bank?

PennysIntoPounds

I'm with kroo and haven't had any problems though I have a much lower account balance than 10k. Like you I just wanted a place to have my current account money without having to constantly switch things around, that gave me interest, so I would say that's your best bet.
(But also look at savings accounts for some of that money if you feel up to it in future 🙂)

SFCooper

I hold it in T212 @ 4.35% and transfer money over to my T212 card as and when I need to.