Maximising Interest with Multiple Current Accounts

Updated on December 15, 2016

Firstly, let me acknowledge that opening multiple current accounts within a short space of time is likely to affect your credit rating. However, unless you are planning to take out a loan, this should not be a problem (more information here).

The practise of opening multiple current accounts in order to access high interest rates has become fairly popular in the past few years, with Santander clearly leading the way with 3% on balances of up to £20,000. The table below compares the best current accounts as of December 2016.

Account
Interest
Maximum balance for interest
Extras
Catches
Potential yearly income
Santander 123
3%
£20,000.00
1-3% cashback on bills
£5 monthly fee, pay in £500 monthly, 2 direct debits monthly
>£540
TSB Classic Plus
5%
£2000.00
5% cashback on the first £100 of contactless payments each month
Pay in £500 monthly, register for internet banking, register for paperless statements and correspondence
£160.00
Bank of Scotland Classic with Vantage
3%
£5,000.00
N/A
Pay in £1,000 monthly, 2 direct debits monthly
£150.00
Club Lloyds
4%
£5,000.00
Lifestyle benefit (e.g. Gourmet Society membership)
Pay in £1,500 monthly, 2 direct debits monthly
£200.00
Halifax Rewards
0%
N/A
£5 monthly reward
Pay in £750 monthly, 2 direct debits monthly
£60.00
Nationwide FlexDirect
5%
£2,500.00
N/A
Pay in £1,000 monthly, 5% interest for first year only
£125.00
Tesco
3%
£3,000.00
N/A
N/A
£90.00

Note that Tesco requires verification of identity via post, and that the rates for Bank of Scotland and Nationwide could change very soon. Most allow for an additional joint account, whilst Bank of Scotland allows for three individual accounts.

Unfortunately, most banks are preparing to cut these interest rates from January 2017, as shown in the table below. This significantly closes the gap between the earning potential of Santander's 123 account and the rest of the field, with the Club Lloyds account falling below TSB's Classic Plus account, until the cashback offer ends in September.

Account
Interest
Maximum balance for interest
Extras
Catches
Potential annual income
Santander 123
1.5%
£20,000.00
1-3% cashback on bills
£5 monthly fee, pay in £500 monthly, 2 direct debits monthly
>£240
TSB Classic Plus
3%
£1,500.00
5% cashback on the first £100 of contactless payments each month (ends September 2017)
Pay in £500 monthly, register for internet banking, register for paperless statements and correspondence
£105.00
Bank of Scotland Classic with Vantage
3%
£5,000.00
N/A
Pay in £1,000 monthly, 2 direct debits monthly
£150.00
Club Lloyds
2%
£5,000.00
Lifestyle benefit (e.g. Gourmet Society membership)
Pay in £1,500 monthly, 2 direct debits monthly
£100.00
Halifax Rewards
0%
N/A
£3 monthly reward
Pay in £750 monthly, 2 direct debits monthly
£36.00
Nationwide FlexDirect
5%
£2,500.00
N/A
Pay in £1,000 monthly, 5% interest for first year only
£125.00
Tesco
3%
£3,000.00
N/A
N/A
£90.00

If you have the time and money, opening multiple current accounts will still provide more income in the coming year than a basic savings account, but alternatives, such as peer-to-peer lending, are becoming more viable.

Comments

    0 of 8192 characters used
    Post Comment

    • Tom Groves profile imageAUTHOR

      Tom Groves 

      24 months ago from United Kingdom

      @blossomsb I am only young and have yet to travel beyond Europe, let alone review Australian banks! Perhaps in a few years I will be more qualified.

    • profile image

      blossomsb 

      24 months ago

      Interesting, but not really relevant for my country. I don't think we have those banks here. How about comparing Westpac, NAB and some others that are more international?

    • Larry Rankin profile image

      Larry Rankin 

      24 months ago from Oklahoma

      Helpful advice.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, toughnickel.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://toughnickel.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)