Allience + Leicester premier account help please

amazamum

Hi,I wondered if anyone could help me,
I have looked for an account that pays more interest than my mortgage and have found the allience and leicester premier direct current account with 50 pounds back though quidco.
My mortgage interest rate is now 5.74%,the allience and leicester account is 8.50% AER(till 30/04/09),if I was to put 2000 pounds into the allience account instead of my offset mortgage would it be worth my while or would I be better just leaving it in the offset.

Thanks so much anyone who can help with the calculations.
Amazamum x:T

YorkshireBoy

Depends on your tax situation.

If higher rate, then 8.5% x 0.6 = 5.1%
If basic rate, then 8.5% x 0.8 = 6.8%

Since you'll have to fund the account with £500 per month, it seems like a lot of messing about - unless there are some secondary benefits?

BTW, the 8.5% account is the Premier Direct.