New TSB Classic Plus Current Account launching 30 March; 5% AER (Var) on £2000 (x2), no fee, no introductory rate
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New TSB Classic Plus Current Account launching 30 March; 5% AER (Var) on £2000 (x2), no fee, no introductory rate

159
Found 12th Mar 2014
New current account launching soon, and you can have two of them, so 5% on £4000. Not to be sniffed at.

No direct debits or switch required, £500 a month pay-in.

Key features:

- 5% AER variable interest on balances up to £2,000**.
- No introductory offer period.
- Available to existing and new customers.
- Minimum monthly deposit of £500.
- No monthly fee.
- Register for internet banking, paperless statements and correspondence.
- Transact in branch, online or over the telephone.
- Maximum two accounts per person.
- Switching service available.

Challenging the competition....

- Some other banks and building societies may try and tempt customers with a ‘teaser rate’ only to take that rate away after 12 months. TSB doesn’t. It simply gives customers 5% interest.

- Most other banks demand a minimum monthly credit of £750 or even £1,000. The Plus account requires a minimum deposit of just £500.

- Some banks insist customers do all their banking online. TSB Plus account holders can manage their money however suits them best, be that in branch, online or over the telephone.

- Other banks require customers to shift their direct debits and standing orders over in order to open new accounts and qualify for the best deals. TSB wants customers to experience what it’s like to be part of this new kind of bank so is happy to let them ‘try before they buy’. TSB will then help people move as and when they are ready.

- Most banks limit their best deals to new customers only. The TSB Plus account is open to existing customers as well as new ones.

apply.tsb.co.uk/per…VER is the link to apply
- rickyc88

159 Comments

that's a good offer..

The only downside is 5% credit interest which means you have to leave the 2k in bank account with all your dd etc.
Edited by: "Henlans" 12th Mar 2014

.. Or just don't set up any dd's on this account

Original Poster

Henlans

The only downside is 5% credit interest


That's the best bit.

Have almost forgotten what interest is

yeah i guess you are allowed 2 accounts.. do you need to have £500 in each account. i guess i can move it from one to the other lol

Only £7 a month interest max per account per month.

Does anyone know the rationale for needing to open 2 bank accounts to gain the 5% on £4K. Then mess about moving monthly deposits into an out of accounts. Same with other banks. Why can't we just have one bank account with increasing interest depending how much you save i.e. not capped.
I've had to open 4 accounts with different banks to maximise my savings and play this stupid game of DD shuttlec0ck

sherbolton

Only £7 a month interest max per account per month.



where does it say that? I can't see it.

Thanks OP. Great timing as the introductory 5% interest in my Nationwide account ends in a few weeks.

nabz234

where does it say that? I can't see it.



Dodgy maths perhaps? Should be £8.33 or thereabouts if you have a constant balance of at least £2k. Or, £100 per year per account.

crumpetman

Dodgy maths perhaps? Should be £8.33 or thereabouts if you have a … Dodgy maths perhaps? Should be £8.33 or thereabouts if you have a constant balance of at least £2k. Or, £100 per year per account.



Then take tax off at 20%, or 40% if you're a higher rate taxpayer

Think i'll stick with Halifax with the £5 reward each month, too much hassle changing banks for £2 extra a month. And I don't need £2,000 in the account
Edited by: "dobis2000" 12th Mar 2014

Can't see which account will give me this on the website though guess they have not updated it.

This link shows some variance from what the original poster mentioned:

tsb.co.uk/leg…asp

1. There isn't mention of th einterest rate on the link
2. But it does say that interest is payable on a balnce up to £2500
3. It says that you need to pay in at least £1000 a month in order to get interest.

I think those existing customers with the Classic account with Vantage added might have to migrate to this new account if they want to. I can'tr ee TSB allowing a further two of the new accounts.

can you just move 500 between two of those accounts each month? or do internal transfers not count?

Henlans

that's a good offer..The only downside is 5% credit interest which means … that's a good offer..The only downside is 5% credit interest which means you have to leave the 2k in bank account with all your dd etc.




not really a downside if you have 2 grand which i have

Original Poster

dobis2000

Think i'll stick with Halifax with the £5 reward each month, too much … Think i'll stick with Halifax with the £5 reward each month, too much hassle changing banks for £2 extra a month. And I don't need £2,000 in the account


Why change? Have both.
zerocrop

This link shows some variance from what the original poster … This link shows some variance from what the original poster mentioned:http://www.tsb.co.uk/legal/current_accounts_legal/plus_important_information.asp1. There isn't mention of th einterest rate on the link2. But it does say that interest is payable on a balnce up to £25003. It says that you need to pay in at least £1000 a month in order to get interest.I think those existing customers with the Classic account with Vantage added might have to migrate to this new account if they want to. I can'tr ee TSB allowing a further two of the new accounts.


I have linked to the TSB press release. The new account will be visible on site soon, but as I said, won't be available until the 30th online, or the next day in branch.
Edited by: "BustaLinx" 12th Mar 2014

Let's say that you put in £2000 a month, which is better, this one or 123 Santander one? Cheers

Original Poster

radissimo

Let's say that you put in £2000 a month, which is better, this one or 123 … Let's say that you put in £2000 a month, which is better, this one or 123 Santander one? Cheers


If you will have an average balance of £2000 (ie £2000 in and £2000 out) then this one (or Nationwide FlexDirect, though 5% only for a year).

If you will be increasing your balance by £2000 each month, so you will have £2000 one month, a total of £4000 the next, £6000 the next, etc, then the 123 is better in terms of pure interest amount for the higher totals. A combination of the two accounts would likely give the best returns though.

Like that it's for existing customers too!

Slap £5700 in next Month in ya isa and you'll get more annually that's what I do each year and just leave it in better than all that messing for £7 a month

Original Poster

kmjuste

Slap £5700 in next Month in ya isa and you'll get more annually that's … Slap £5700 in next Month in ya isa and you'll get more annually that's what I do each year and just leave it in better than all that messing for £7 a month


Good luck getting much more than 1.75% in an ISA this year.

ISA's for 2014/15 will be £5940 for the tax year

BustaLinx

Good luck getting much more than 1.75% in an ISA this year.


the best about ISA is the It remains tax free for add long as you have the funds and if interest rates increase again you can do an ISA switch

Original Poster

Tina12

the best about ISA is the It remains tax free for add long as you have … the best about ISA is the It remains tax free for add long as you have the funds and if interest rates increase again you can do an ISA switch


I agree, but the smart move this year - unlike previous years - is to wait and put the money in an ISA at the end of the tax year, ie not until 2015, and earn better interest on those funds in the meantime.

Well the household account is with TSB so switching to this can only be a bonus. Cheers OP.

Nice one top tips

I'll be opening two of these when they become available, but with full awareness that the "no introductory rate" is really no better than there being a fixed introductory rate, given that the interest is variable. Yes, they'll *probably* keep this account rate for two or three years (easier to hold as time goes by when interest rates start rising next year) but they could just as easily drop the rate after a relatively short time if they've miscalculated the attractiveness of this loss-leading account.

Henlans

that's a good offer..The only downside is 5% credit interest which means … that's a good offer..The only downside is 5% credit interest which means you have to leave the 2k in bank account with all your dd etc.



I don't understand why you consider 5% credit interest to be a downside? The main selling point of this account is the 5% interest. Think of it as a savings account rather than current account.

Not that I've looked but I imagine it would be hard to beat the Santander 123 account, what with all the cashback and 3% up to £40k

If you save £2,000 for the entire year, you'll be receiving £6.67 per month in interest after 20% TAX.

Henlans

The only downside is 5% credit interest


Do you know what that means?

will they allow internal transfers like hslifax use to? count towards the 500 monthly pay in...

open 1 or 2 pay in 2k

set up so to pay in 500 a month

day after set up another so back to normal account

easy £6.67 a month

Deal

dobis2000

Think i'll stick with Halifax with the £5 reward each month, too much … Think i'll stick with Halifax with the £5 reward each month, too much hassle changing banks for £2 extra a month. And I don't need £2,000 in the account




Do you have to pay a fee for this account?

Original Poster

snowtiger

Do you have to pay a fee for this account?


No fee for the Halifax Reward

marsh102

Not that I've looked but I imagine it would be hard to beat the Santander … Not that I've looked but I imagine it would be hard to beat the Santander 123 account, what with all the cashback and 3% up to £40k



It's 3% up to 20k.....not 40k

But then there is the £2 monthly charge to put into consideration (which can be normally made with the dd's)

Edited by: "dibbz" 13th Mar 2014

does anyone know if the interest is paid monthly like it is at the moment

dibbz

It's 3% up to 20k.....not 40k



Last time I checked, customers were allowed to open two 123 accounts.

If you're filling up the 123, why not use TSB as well?
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