What is the Highest Interest Rate / Cashback / Rewards You Can Get? Special_Saver2

#1
People keep asking what is the highest interest rate you can have using a combination of current accounts and regular savings accounts if you are really dedicated and happy to move your money around between current accounts to meet their funding requirements (and where necessary have a few direct debits or standing orders on the current accounts). It is clogging up my Regular Savings thread so I am starting a separate thread to reduce the number of posts about this on the Regular Savings thread.



If you are a single adult, willing to open multiple current accounts that do not have a monthly charge, and do not happen to live near a building society that offers a particularly good regular savings account that is available to locals only, then the best combination is below. I have also calculated the amount of gross interest per year. If you do not understand the gross interest calculation on the regular savings accounts then look at the explanation in Martin's Regular Savings Accounts page. I have used the calculator on this page to do the interest rate calculations.



Cashback (non-taxable) and Rewards (taxable)



Free £48 per year plus up to £18 per year for free for making debit card payments... Co-operative Bank Current Account with Everyday Rewards (£800 does not need to stay in the account, can be transferred immediately in and out again as long as you have 4 direct debits, remain in credit (or within your overdraft limit), log in to Online Banking or the Mobile Banking app at least once during the month, and remain opted in for Paperless Statements).



Free £48 per year... Barclays Blue Rewards (£800 does not need to stay in the account, can be transferred immediately in and out again as long as you have 2 direct debits too and you'll get an extra £3 a month off them if you use Barclays for home insurance and another £5 if you have your mortgage with Barclays/Woolwich. There are also a few other lures: 1% cashback on purchases from certain 'Smartspend partners' (Quoted as "GAP, Boots, Waterstones, Toys R Us and many more") and 7% off Expedia bookings). Thanks to Maelwys for this information.



Free £36 per year... Halifax Reward current account (£750 does not need to stay in the account, can be transferred immediately in and out again as long as you have 2 direct debits too)



Free cashback if you pay more than £1,200 per year on household bills by direct debit... NatWest Reward Current Account paying 3% cashback for a £3 per month fee (you need to pay more than £1,200 per year on household bills before you make back the £36 annual fee, assuming you are not paying any tax on NatWest's reward payment; you will have to spend more if it is taxed)



Interest



5% on... £2,000 lump sum plus £1,300 per month (£419.34 interest)... Nationwide Flexclusive Regular Saver account (£500 per month, earns £161.29 per year), First Direct Regular Saver account (£300 per month for 12 months, earns £96.77 per year gross interest), Marks and Spencer Bank Monthly Saver (£250 per month for 12 months, earns £80.64 per year), HSBC Regular Saver (£250 per month for 12 months, earns £80.64 per year). You could also use the Nationwide FlexDirect account to get 5% on £2,500 lump sum but that only lasts for the first 12 months, so I have not counted it here. (Additional note: posters on pages 225 and 226 of my regular savings thread have informed us that despite the terms and conditions of this account, they have been able to continue getting 5% on this account after 12 months by downgrading and upgrading the account. Click on the 225 link in the last sentence to see more details.)



4% on... £5,000 lump sum (£64.61 interest)... Norwich & Peterborough BS Gold Savings account (£250 per month, earns £64.61 interest).



3% on... £21,000 lump sum plus £400 per month (£791.48 interest)... Bank of Scotland Current Account with Vantage option (can open three accounts, £15,000 lump sum, earns £450), Tesco Bank current account (can open two of these, £6,000 lump sum total, earns £180), Club Lloyds Monthly Saver (£400 per month, earns £77.65 per year interest), TSB Classic Plus current account (£1,500 lump sum, earns £45 per year), Santander Regular eSaver (£200 per month, earns £38.83 per year)



If you are part of a couple then some of these options allow joint accounts too (such as the Santander 123 account) in addition to an account each in sole names. If anybody wants to calculate this for a couple with joint accounts then feel free to do so and I can incorporate that into this post.



It is also worth noting that applying for current accounts with overdrafts can affect other applications for credit (e.g. credit cards) in the short term. It may be best to space out such current account applications by a few months each.



If you are not sure how this all works then read through the posts in this thread which contain specific questions and answers that should clarify matters.



SS2

#5
Valiant attempt on getting everything into one place. And apologies for clogging up your RS thread - you are quite right, I should have refrained from debating the virtues of cash ISAs vs best interest rates in that thread.



A couple of points that haven't yet been raised about your summary:

you refer to "posts above", "post number x" that aren't in this thread
for FTBs, the Halifax HTB ISA should figure on the 'best rates' menu

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