Best Current Account In Credit - it's not as daft as it sounds....

confusciacat

...at least I hope not! I've checked the site for an answer, anyway...

I moved from First Direct to Alliance & Leicester over a year ago. As per Martins advice I'm thinking about moving again to get the most of being in credit. I don't want to go to Abbey as recommended as I've heard they're a nightmare and I'm too busy in the rest of my life to !!!! about with a bank with !!!! customer service. Should I stay with A&L, or is there another bank that's recommended??

Cheers all, sorry if this has been asked before....

terafarma

confusciacat wrote: »

...at least I hope not! I've checked the site for an answer, anyway...

I moved from First Direct to Alliance & Leicester over a year ago. As per Martins advice I'm thinking about moving again to get the most of being in credit. I don't want to go to Abbey as recommended as I've heard they're a nightmare and I'm too busy in the rest of my life to !!!! about with a bank with !!!! customer service. Should I stay with A&L, or is there another bank that's recommended??

Cheers all, sorry if this has been asked before....

Why not visit the various financial product comparison websites like www.moneyfacts.co.uk, www.moneysupermarket.com and others where you'll be able to check, compare and narrow things down to what actually meets your financial requirements with regards to in-credit current accounts.

TomJ

Coventry Building Society's First Accpount has a reasonable rate for large amounts in credit, though they're not totally unproblematic CS wise. Halifax pays 6.17% on balances up to £2500, though like the Coventry acct this requirees funding of £1000 per month.

MrSafeGaz

I was in the same position 6 months ago. Went with Abbey to begin with. Was a massive mistake, they are inept to say the least so I closed my account after 2 months and moved to Halifax where everything has been smooth.

alared

Halifax pays 6.05% gross on balances up to £2,500 on it`s current account BUT you have to pay in £1,000 a month.

MrSafeGaz

alared wrote: »

Halifax pays 6.05% gross on balances up to £2,500 on it`s current account BUT you have to pay in £1,000 a month.

It's 6.17%. Just to add that there are two versions of this high interest account, one which is free where you do have to pay £1000 per month in. Secondly, there is the ultimate reward account which you pay £10 a month for but don't have to credit it with £1000 per month. It includes stuff like phone insurance, breakdown cover, travel insurance and a fair bit more but whether this is useful to you is obviously situational.

Meltdown_2

To clarify (hopefully) :

The 6.17% is AER (Annual Equivalent Rate) - a figure quoted by the banks to enable potential customers to compare the rates of return across different sorts of accounts (i.e. where the interest is paid yearly, or monthly, or bonuses are involved, etc).

The interest on the Halifax High Interest Current Account is paid monthly into the account, and thus itself earns interest, increasing the real rate of return beyond the gross figure quoted by alared, to the AER figure quoted by MrSafeGaz. This 'interest paid on the interest' scenario accounts for the main differences between gross and AER figures quoted on monthly-paying accounts.

It should also be mentioned that the Halifax High Interest Current Account does in fact pay interest on amounts in excess of £2500, but this is at a measly rate of 0.1%.

ukdutypaid

I've got the Abbey one.. Once they did manage to get it up and running, I've had no problems with it. It did take over a month to sort out and I try and keep it hovering around the 2,500k mark (main CA is a Bank of Scotland 6.17% job), primarily for a bit of surplus cash to earn high interest.

I do pay things in and out of it.. I have th 1,000 bouncing backwards and forwards on a SO, to keep the min amount paid in...

Have you looked at the new HSBC 8% one (8% in credit and d 8% authorised OD). Not sure off the top of my head, if their's a fee...

Using that one would also give you access to the HSBC 8% reg saver (for a year). I believe it hasn't been withdrawn yet, but is still hovering about on their site..

MrSafeGaz

Ahh yeah, didn't see the word gross in that post AER is the value used by the masses to compare accounts anyway, throwing in gross figures will only serve to confuse.

derrick

ukdutypaid wrote: »

Have you looked at the new HSBC 8% one (8% in credit and d 8% authorised OD).

Only up to £1000. in credit, and only for 12 months! HSBC

• 8% AER (7.72% gross) fixed credit interest for balances up to £1,000 for 12 months from account opening. 2.5% AER (2.47% gross) variable up to £2,500 and 0.1% thereafter. Apply between 28th January and 31st March 2008.
• 8% EAR fixed debit interest on debit balances up to £1,000 for 12 months from account opening. The standard overdraft rate of 16.1% EAR variable will apply thereafter. Credit is subject to status.

Open a Bank Account Plus account between 28th January and 31st March 2008 to receive 8% AER (7.72% gross) fixed interest on credit balances up to £1,000 and pay only 8% EAR fixed on debit balances up to £1,000 for 12 months from account opening. HSBC

And only 3 days left to open that acc.

confusciacat

Thanks all, looks like it might have to be Halifax.... although I will check out those website as well.