Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
S&P SEASONAL ANALYSIS - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Savers Could Earn Over 10% by Using a Current Account

Personal_Finance / Current Accounts Sep 20, 2016 - 12:08 PM GMT

By: MoneyFacts

Personal_Finance

At a time when savings rates are reaching record lows, there are clearly far fewer ways of earning a decent return. Surprisingly, a current account could be a salvation for savers weathering the current climate, thanks to the rewards they offer.

By making use of the Current Account Switch Guarantee (which has been in force for three years this month), spenders and savers alike could earn up to £220 in the first year when moving their account.


Despite this service, millions could still be missing out on a better deal, as it has been estimated that just three million people have ditched their old account since 2013*.

In fact, our Moneyfacts.co.uk research shows that the most rewarding current accounts can offer an equivalent interest rate of up to 11% based on £2,000 cash in the first year. In contrast, the average easy access savings account would pay just 0.46%, which translates to a dismal earning of only £9.20 in the first year.

Rachel Springall, Finance Expert at www.moneyfacts.co.uk, said:

“Savers and spenders should definitely consider using a current account as a way of getting something a little extra, particularly with savings rates plummeting to record lows. Low interest rates encourage spending, but consumers could still take advantage of cash rewards if their savings aren’t going very far.

“The most important rule in using current accounts to earn cash is to meet eligibility criteria, which could be minimum funding requirements, or the need to bank online or set up direct debits, so it’s important to be aware of these before switching. It’s however not advised to move to an account just for its perks; it must be a cost-effective choice and suit most needs.

“A decent current account can give customers so much more than just free cash; with high interest rates on offer, exclusive products and even rewards on spending, there is an abundance of great incentives available. Borrowers can save cash too, with some accounts offering cost-effective overdrafts that could save frequent users hundreds of pounds.

“Whilst it may seem an effort to compare current accounts, given the variety on offer, it is worthwhile to establish if any money can be saved, either in overdraft charges or by earning a little something extra each month.”

*Source: Bacs Payment Schemes Limited switching figures. Since 16 September 2013 there have been 3,240,640 successful switches made using the switcher service.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in