As I’ve mentioned before, I used to work in financial services. We advised on mortgages, savings, current accounts, loans and insurances, so I covered the full range, really. It’s given me an appreciation of where I’m best to place money, save money and spend it. It taught me to prioritise paying off debts first, as the rate you’re paying money back at it normally higher than the rate you’re receiving. This is particularly true in this current low-rate climate, as rates of returns are understandably low. But then so’s my mortgage, so I can’t complain! And the one thing I always knew, was to move any surplus out of my current account into my savings account, as current accounts pay next to nothing in interest so it’s a waste having it sitting there. But that may not be the case as much nowadays…
The TSB Classic Plus account pays you 5% AER on balances up to £2000, and they state that this is not just an introductory rate, but one that they plan to offer for the foreseeable future. This is all providing that you pay in at least £500 per month and opt for internet banking, going paperless. I don’t know about you, but I’ve long been on paperless internet banking anyway. Yes, I love paper, but not this sort! It’s available to both new and existing TSB customers and there is a seven day switching service available. There are no monthly fees and it has all the usual things you’d expect to run alongside a current account such as mobile banking, a debit card and even a cheque book if you want one.
You can apply on-line, in branch or over the phone, and you can find all of the details here.
I can see the appeal, as so many of us have our money living in our current accounts most of the time, so why not actually earn a little interest on it. What do you make of it?
Disclaimer: Post written in collaboration with TSB