TSB Classic Current Account Plus is back - 5% (4.89%) Gross @ TSB - HotUKDeals
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This was around a few months ago but closed - it's now available again - you won't get much higher % rate at the moment

Up to 2k you'll get 4.89% after tax (20% rate) - minimum pay in £500 per month.

I have 2 of these accounts, and setup standing order to fulfill the minumum 500 per month. May be able to open more...

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With our Classic Plus Account, you get everything that the Classic Account has to offer, plus high credit interest on balances up to £2,000.

To earn interest on our Classic Plus account, all we ask if that you pay in a minimum of £500 a month into your Plus account and register for Internet Banking, paperless statements and paperless correspondence.
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Top Comments

(2)
31 Likes
Loads of current accounts out there where interest rates are better than savings accounts.

If you have the money, then open the accounts in this order:

1. TSB Classic Plus x 2 = £4000 @ 5%
2. Nationwide FlexDirect x 1 = £2500 @ 5%
3. Club Lloyds x 1 = £5000 @ 4%
4. Santander 123 x 1 = £20000 @ 3%
5. Tesco Current Account x 2 = £6000 @ 3%

The above does not include the extra allowed for joint accounts.

There are funding/Direct Debit requirements on these accounts so read the T&Cs before applying.

Don't forget other accounts either:

1. Halifax Reward - £5 per month
2. First Direct regular saver - 6% (max. £300/month)
3. Club Lloyds Monthly regular saver - 4% (max £400/month)

:)
17 Likes
I have two of these accounts and my wife two also. You earn the 5% Gross interest on a balance upto £2000.00. You do not earn it on anything else so no point putting 4K into just one account- open two!

Interest is calculated daily.

You must have deposits of £500 minimum per calender month to qualify for the interest rate.


INTERNAL transfers DO count towards your monthly minimum deposit. I have £500 that moves between each account on a standing order at the beginning of the month to meet that criteria.

You can ONLY have TWO accounts per person. Any more and you break the terms of the accounts and you will loose the interest on all accounts and it drops to a paltry sum.

You can only create one account at a time. Wait until the first account is made then confirmed before starting the next.

You can make them all online but I found it best to go to a branch afterwards to do the standing orders to check everything works.

interest on a £2000 full account works out about £6.60 per month NET so about £80 a year.

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1 Like #1
Does the £500 need to be paid in from an external account or can you setup a circular standing order to fulfill the funding requirement ?
#2
I have a been a Lloyds customer for 20 odd years and still have a "classic" current account which is no longer in use except for one direct debit that didn't transfer over when I switched current accounts to Nationwide for a good mortgage offer.

If I applied for this would I be credit checked? Thinking of using this just to gain decent interest on some savings.

Shouldn't be a problem but just trying to avoid another check on the file.
#3
I suspect you would be credit checked even if you applied for the account and didn't request an overdraft. It's a good account for saving a relatively small amount. I have 2 of these accounts.
#4
JohnnyUtah
I have a been a Lloyds customer for 20 odd years and still have a "classic" current account which is no longer in use except for one direct debit that didn't transfer over when I switched current accounts to Nationwide for a good mortgage offer.

If I applied for this would I be credit checked? Thinking of using this just to gain decent interest on some savings.

Shouldn't be a problem but just trying to avoid another check on the file.
If you have a live account you can upgrade this online. It's pretty simple, and what I did recently. Log in online, if you can (otherwise use phonebank service or in branch) and click on "Apply" for the new account. Took a few minutes and no checks for me, at least, as it's an internal upgrade. Remember the monthly pay in requirement, but it's easy to circulate this to another bank account, using standing orders so you don't forget.
4 Likes #5
It turns out internal transfers are OK to meet the funding requirements so ... open 2 of these accounts and have a standing order to flip £501 between each account and that's it. easy.
#6
Over 2k gets no interest so after a 2k balance you need to transfer out 500 and transfer in 500? In effect keeping balance at 2k but transferring in and out...
17 Likes #7
I have two of these accounts and my wife two also. You earn the 5% Gross interest on a balance upto £2000.00. You do not earn it on anything else so no point putting 4K into just one account- open two!

Interest is calculated daily.

You must have deposits of £500 minimum per calender month to qualify for the interest rate.


INTERNAL transfers DO count towards your monthly minimum deposit. I have £500 that moves between each account on a standing order at the beginning of the month to meet that criteria.

You can ONLY have TWO accounts per person. Any more and you break the terms of the accounts and you will loose the interest on all accounts and it drops to a paltry sum.

You can only create one account at a time. Wait until the first account is made then confirmed before starting the next.

You can make them all online but I found it best to go to a branch afterwards to do the standing orders to check everything works.

interest on a £2000 full account works out about £6.60 per month NET so about £80 a year.
3 Likes #8
upto 2k?? whats the point
1 Like #9
redcastle


You can ONLY have TWO accounts per person. Any more and you break the terms of the accounts and you will loose the interest

I was told you can also have 2 as a joint account, so 6 in total.
#10
sunriser
redcastle


You can ONLY have TWO accounts per person. Any more and you break the terms of the accounts and you will loose the interest

I was told you can also have 2 as a joint account, so 6 in total.

This is correct.
#11
valerydarcy
upto 2k?? whats the point

x6 ??
#12
Decent but Halifax or Santander are better options... Halifax for the switch over incentive or Santander for 3% on balances over £3k
1 Like #13
redcastle
I have two of these accounts and my wife two also. You earn the 5% Gross interest on a balance upto £2000.00. You do not earn it on anything else so no point putting 4K into just one account- open two!

Interest is calculated daily.

You must have deposits of £500 minimum per calender month to qualify for the interest rate.


INTERNAL transfers DO count towards your monthly minimum deposit. I have £500 that moves between each account on a standing order at the beginning of the month to meet that criteria.

You can ONLY have TWO accounts per person. Any more and you break the terms of the accounts and you will loose the interest on all accounts and it drops to a paltry sum.

You can only create one account at a time. Wait until the first account is made then confirmed before starting the next.

You can make them all online but I found it best to go to a branch afterwards to do the standing orders to check everything works.

interest on a £2000 full account works out about £6.60 per month NET so about £80 a year.

So two accounts set up right, and thats £160 a year for a few hours of hassle. I guess its worth it, it would pay for my sons football team subs, but I am not sure I can actually be bothered.
#14
M_z
So two accounts set up right, and thats £160 a year for a few hours of hassle. I guess its worth it, it would pay for my sons football team subs, but I am not sure I can actually be bothered.

Exactly - plus it ties up 2/4K of cash to get the money (you need the full 2K in there to net the full interest possible), whilst the Halifax option doesnt. Remove the cash for any reason for a few days, and any benefit is lost.

Better options are the Santander / Halifax unless you are the type who saves a couple of grand in their current account (plenty of people do that, easier to manage in their eyes), or offset against their mortgage.
#15
sniperpenguin
M_z
So two accounts set up right, and thats £160 a year for a few hours of hassle. I guess its worth it, it would pay for my sons football team subs, but I am not sure I can actually be bothered.

Exactly - plus it ties up 2/4K of cash to get the money (you need the full 2K in there to net the full interest possible), whilst the Halifax option doesnt. Remove the cash for any reason for a few days, and any benefit is lost.

Better options are the Santander / Halifax unless you are the type who saves a couple of grand in their current account (plenty of people do that, easier to manage in their eyes), or offset against their mortgage.

TSB doesn't require moving your banking and Direct debits over, just an internal transfer once a month. I already have a haifax one and the Santander one needs to be your main account to make use of the potential 'cashback'
#16
You can request two classic plus accounts online and a third classic account.
After you receive your activation in the post, you can click on the upgrade button on the classic account to turn it into a classic plus account.
The wife and I have 6 accounts this way and earn approximately £20 interest per month for 3x£2000 each, which we then transfer to Santander's 123 account for 3%.
It's easy to do and gives you a nice bonus at the end of each month.
The circular standing order of £500 is fine. Account 1 to Account 2, Account 2 to Account 3 and Account 3 to Account 1.
The transfer out all happens in Account 1 where I scrape the interest too.
The interest differs each month based on the number of days in the month so it's not easy to setup automatic interest scraping. Plus the interest is often paid a day later than it's due. But its free money.

- tonymac
#17
Lloyds Club account works as a good combo with the TSB deal, 4% interest on £5000 when you transfer £1500 a month in.

Open 2 individual and 1 joint TSB accounts and 1 Lloyd's account gives £11,000 savings at 4.6% gross.
1 Like #18
What's great about this account, is there is no introductory time frame. Its 5% int, all the time, when you meet the standing order of £500.
#19
leeparsons
What's great about this account, is there is no introductory time frame. Its 5% int, all the time, when you meet the standing order of £500.

It's variable so the rates can change, they just have to give notice.
#20
oddballjamie
leeparsons
What's great about this account, is there is no introductory time frame. Its 5% int, all the time, when you meet the standing order of £500.

It's variable so the rates can change, they just have to give notice.

Of course, but its been this rate for the past 6 months!
Allot of current accounts are doing this offer, if you look hard enough.
#21
The potential problem with Club Lloyd's is their requirement to have 2 paid direct debits setup on each account to qualify for the 4% interest.
#22
oddballjamie
leeparsons
What's great about this account, is there is no introductory time frame. Its 5% int, all the time, when you meet the standing order of £500.

It's variable so the rates can change, they just have to give notice.

As with every other bank account in the world
#23
redcastle
I have two of these accounts and my wife two also. You earn the 5% Gross interest on a balance upto £2000.00. You do not earn it on anything else so no point putting 4K into just one account- open two!

Interest is calculated daily.

You must have deposits of £500 minimum per calender month to qualify for the interest rate.


INTERNAL transfers DO count towards your monthly minimum deposit. I have £500 that moves between each account on a standing order at the beginning of the month to meet that criteria.

You can ONLY have TWO accounts per person. Any more and you break the terms of the accounts and you will loose the interest on all accounts and it drops to a paltry sum.

You can only create one account at a time. Wait until the first account is made then confirmed before starting the next.

You can make them all online but I found it best to go to a branch afterwards to do the standing orders to check everything works.

interest on a £2000 full account works out about £6.60 per month NET so about £80 a year.

2 account per person and a joint account so for a couple you can have 6 account all together. i didnt realise they stopped doing it, i thought it was on going, i want to open it for my parents too. does anyone know how long it is on for please?
#24
valerydarcy
upto 2k?? whats the point

I wouldn't sneer at £8 interest every month! Of course, there are those who want to be exploited... 5% is better 0.5%, no???
#25
Thank you so much for the posting. I have finally managed to open an account for my 19-year-old. He had been rejected 3 times. Thank you so much! HEAT or FIRE added! I would never sneer at 4.89% .. What is the point of an ISA which pays peanuts!
#26
acidstrato1984
Decent but Halifax or Santander are better options... Halifax for the switch over incentive or Santander for 3% on balances over £3k

Yes, but you don't have to have DDor SO to run the account(s)!
2 Likes #27
Yes it's a bit of work but the interest can be worth it. Combine this with a 0% purchase credit card and you are entering the world of stoozing. Put your normal day to day purchases on the 0% purchase credit card and put the cash you would have spent in one of the high interest paying current accounts. Ensure you have a direct debit to cover the minimum balance on the credit card and continue this for the length of the 0% period. Once the 0% deal has finished then just take your cash out and pay it off. Then just start again and it's effectively free money. You need to be disciplined so it's not for everybody. OK, the interest won't be massive but it could be enough to pay for your annual broadband bill or tv licence or car road fund etc. As previously mentioned you need to be disciplined.
1 Like #28
The potential problem with Club Lloyd's is their requirement to have 2 paid direct debits setup on each account to qualify for the 4% interest.

Tesco savings account allows a direct debit to fund - I have several going to different accounts all at 1p every month
#29
TURDIS
The potential problem with Club Lloyd's is their requirement to have 2 paid direct debits setup on each account to qualify for the 4% interest.

Tesco savings account allows a direct debit to fund - I have several going to different accounts all at 1p every month

I didn't know they still did that. Excellent I'll look into it. That will make things rather easier.
#30
TURDIS
The potential problem with Club Lloyd's is their requirement to have 2 paid direct debits setup on each account to qualify for the 4% interest.

Tesco savings account allows a direct debit to fund - I have several going to different accounts all at 1p every month

What is the name of this account and what is the interest rate please?
2 Likes #31
Tesco Internet Saver
#32
TURDIS
Tesco Internet Saver
It's got a pretty poor interest rate but it does allow funding by direct debit which is extremely useful. Thanks to Turdis for pointing out this facility.
#33
Thank you very much, op.

Have signed up. It's a little bit of work but will hope to sign up for the wife and I (4 accounts in total) so that's a nice little bit of interest coming in each year, though the interest is variable so will likely change. Still, it's better than nothing for minimal work.

(_;)
#34
tony3
You can request two classic plus accounts online and a third classic account.
After you receive your activation in the post, you can click on the upgrade button on the classic account to turn it into a classic plus account.
The wife and I have 6 accounts this way and earn approximately £20 interest per month for 3x£2000 each, which we then transfer to Santander's 123 account for 3%.
It's easy to do and gives you a nice bonus at the end of each month.
The circular standing order of £500 is fine. Account 1 to Account 2, Account 2 to Account 3 and Account 3 to Account 1.
The transfer out all happens in Account 1 where I scrape the interest too.
The interest differs each month based on the number of days in the month so it's not easy to setup automatic interest scraping. Plus the interest is often paid a day later than it's due. But its free money.

- tonymac

I have just enough money in an ISA account (0.5% interest !!!) to do what you have kindly suggested, the only confusion for me is the final transfer to the Santander 123 account, do I assume you earn a further 3% once the interest earned is transferred into this account?

Another question I had is, can I open all 6 account online? or do I need to visit a branch?

Thanks and excuse all the questions.

Edited By: manc007 on Sep 08, 2014 17:01
#35
manc007
tony3
You can request two classic plus accounts online and a third classic account.
After you receive your activation in the post, you can click on the upgrade button on the classic account to turn it into a classic plus account.
The wife and I have 6 accounts this way and earn approximately £20 interest per month for 3x£2000 each, which we then transfer to Santander's 123 account for 3%.
It's easy to do and gives you a nice bonus at the end of each month.
The circular standing order of £500 is fine. Account 1 to Account 2, Account 2 to Account 3 and Account 3 to Account 1.
The transfer out all happens in Account 1 where I scrape the interest too.
The interest differs each month based on the number of days in the month so it's not easy to setup automatic interest scraping. Plus the interest is often paid a day later than it's due. But its free money.

- tonymac

I have just enough money in an ISA account (0.5% interest !!!) to do what you have kindly suggested, the only confusion for me is the final transfer to the Santander 123 account, do I assume you earn a further 3% once the interest earned is transferred into this account?

Another question I had is, can I open all 6 account online? or do I need to visit a branch?

Thanks and excuse all the questions.

You can open all the TSB accounts online. The Santander we had to go to the branch for and provide the usual utility bill, picture ID and one other proof of ID.
The Santander account has to have 3K in it to earn 3% but yes, I scrape the monthly interest into Santander using TSB's online payment system as soon as the interest hits the account. That's because as the others say you earn nothing on the balance over 2K.
They refer to this as the money champagne waterfall. You fill up the highest interest accounts and trickle the interest to the lesser paying accounts till you max them all out and hit the low interest alternatives.
If you are receiving 0.5% interest, you might as well do a capital payment on your home loan or something as it's really not worth the interest.
The wording on the TSB account has changed since I opened them. So perhaps the facility to open accounts has changed too. They all get wise eventually.
MBNA used to pay interest on their in-credit balance for their credit card. That was 22% :-) Took them a few months to get wise on that one also :-)
Keep reviewing your money and don't sit still. That will help and you can look at other countries also as they have bank accounts which pay more. Santander in Poland (WBK) pay 4% on a bond. There are some German banks that pay 6% also.
Do interbank transfers to avoid paying tourist rates in money exchange. The UK is not the only place to earn and it's best to spread your money to minimise risk.

Hope this helps.
#36
Does rbs do anything like this?
#37
manicmidlander
Does the £500 need to be paid in from an external account or can you setup a circular standing order to fulfill the funding requirement ?
needs to be paid from an external account but nothing to stop you setting up a SO with another account you have and circling the money between the accounts.
#38
oddballjamie
Lloyds Club account works as a good combo with the TSB deal, 4% interest on £5000 when you transfer £1500 a month in.

Open 2 individual and 1 joint TSB accounts and 1 Lloyd's account gives £11,000 savings at 4.6% gross.
I have the 3 TSB accounts...and will soon have a Lloyds...thanks for the tip :)
#39
So if yoy have £2001 you wont earn any interest? Or is it that you will on the 2k, just not on any above that amount?
#40
walderston
manicmidlander
Does the £500 need to be paid in from an external account or can you setup a circular standing order to fulfill the funding requirement ?
needs to be paid from an external account but nothing to stop you setting up a SO with another account you have and circling the money between the accounts.

This is incorrect. It has already been confirmed that the funding can come from another TSB account.

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