Monday 23 June 2014

Always in credit


If you never touch your overdraft, not even by a pound, you should grab the account that pays the most interest on your positive balance.

Top interest-paying accounts

If you never enter your overdraft, focus on earning the most interest on your positive balance. Most accounts only pay interest on a limited amount, so sweep the rest of this cash into the Top Savings Account to maximize your interest.
Before you do, know that it's totally legit to hop about bank accounts, and it's easy to do if they don't require you to link your direct debits and standing orders. To boost your savings rates, set up a monthly standing order from your normal bank account for the required amount, then move it back the next day. See our 5% Savings Loophole guide for a step-by-step guide on how to do this.
Most accounts require a minimum level of monthly income to be paid in, and all require a credit check.

Some current accounts pay higher interest than savings accounts. Take advantage and you could earn 5% on £13,000 without actually switching your banking - more than triple the standard easy-access account rate available now.

Why are banks are offering such good rates? They're basically offering these as loss leaders to get you to switch to them. But you don't actually have to do that.
This means you don't need to have any standing orders or direct debits set up on some accounts, and while you need to credit them with a minimum monthly payment (which differs on each account), you don't need to pay in your salary. It's like 'try before you buy', in the hope you fully switch when you're wowed.

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