It would be £90 over the year (3% of £3000) so £7.50 a month. This would vary a bit depending on whether interest is calculated daily or monthly and it would rise slightly over time as you'd be earning interest on the interest assuming you didn't withdraw the interest.
You then have to take tax into account. Banks will typically take 20% off unless you have declared you are a non-taxpayer or it is held in an ISA. If you are a higher rate tax payer then you will owe the extra tax in your tax return.
It would be £90 over the year (3% of £3000) so £7.50 a month. This would vary a bit depending on whether interest is calculated daily or monthly and it would rise slightly over time as you'd be earning interest on the interest assuming you didn't withdraw the interest.
You then have to take tax into account. Banks will typically take 20% off unless you have declared you are a non-taxpayer or it is held in an ISA. If you are a higher rate tax payer then you will owe the extra tax in your tax return.
Thanks but this is for a current bank account so its only paid up to £3000 So just want to see what they would pay in every month as interest.
Thanks but this is for a current bank account so its only paid up to £3000 So just want to see what they would pay in every month as interest.
£3000 x 3% = £90 a year
£90 / 12 = £7.50 a month pre tax
£7.50 minus 20% so around £6 a month but it would vary by a few pence each month due to the way the calculation is done.
£3000 x 3% = £90 a year
£90 / 12 = £7.50 a month pre tax
£7.50 minus 20% so around £6 a month but it would vary by a few pence each month due to the way the calculation is done.
That sounds good then so may open that account then but also keep the one i have to as that gives £5 a month
Thanks but this is for a current bank account so its only paid up to £3000 So just want to see what they would pay in every month as interest.
Do you keep a lot of cash hanging around in your current account? Mine is usually mostly empty by half way through the month when all the direct debits have gone through.
Do you keep a lot of cash hanging around in your current account? Mine is usually mostly empty by half way through the month when all the direct debits have gone through.
i was just thinking of taking £3ooo out of my savings account which is rubbish interest rate as they all are now and then that £3000 would get 3% which is more then savings account.
I know you have to pay a certain amount to get the rates but im weekly paid so i just have 2 weeks paid into one account ( £5 a month interest ) then 2 weeks paid in other ( 3% account ) then just keep doing that.
Is this a Santander 321 account. I am looking to transfer to it as I can't see anywhere else that gives 3% on 3000 to 20,000. It seems ridiculous that I am better off putting my meager saving in a current account rather than a savings account.
Is this a Santander 321 account. I am looking to transfer to it as I can't see anywhere else that gives 3% on 3000 to 20,000. It seems ridiculous that I am better off putting my meager saving in a current account rather than a savings account.
No its a Tesco Current Account! just looks good as you get club card points as well.
The TSB Account wont stay 5% after a year it will drop. The Tesco one seems to stay at 3% until they decide to change it
The Santander account is great, especially if there are two of you and you have a fair amount of cash and 6 direct debits, as you can open three accounts between the two of you, one each and one joint account with two direct debits each account. Well worth it. Don't forget with all of these accounts, when you have reached the account maximum, £20000 in Santander you don't earn any interest on the amount over the account max.
Dave
5% does sound too good to be true going by the current market. I would suspect it is more of an introductory offer.
I've had a look around this morning at various sites such as money saving expert and none of them mention an introductory rate. I opened an account in branch and it wasn't mentioned then and I don't recall seeing it mentioned in any of the paperwork I have.
I think these offers exist because of the new ISA rules. ISA's used to be around the 5% mark but now you can put 15 grand in a year banks are understandably limiting the interest on them. They still need to attract customers however so are creating these high interest current accounts and putting limits on them.
Does anybody know if when it says for exsample "pay in £750 a month" to get the bonus does that mean i can jet transfer the money in from a different bank account and then transfer it back out again?
Does anybody know if when it says for exsample "pay in £750 a month" to get the bonus does that mean i can jet transfer the money in from a different bank account and then transfer it back out again?
That's exactly what I do with my TSB accounts except it is £500 with TSB. I have two TSB accounts and have standing orders set up on both to send £500 to the other on a same day each month.
Does anybody know if when it says for exsample "pay in £750 a month" to get the bonus does that mean i can jet transfer the money in from a different bank account and then transfer it back out again?
You'd need to read the T&C of the individual accounts. For example, I think Santander's 123 Account has a £500 pm requiremnt, but doesn't count transfers between accounts.
Pay a monthly account fee of £2.
Fund the account with £500 a month (excludes internal transfers). A minimum balance of £1,000 is needed to receive interest.
Set up at least 2 Direct Debits. You’ll get monthly cashback on selected household bills you pay by Direct Debit
Transfer from other banks is fine. true of all bank accounts.
santander does 3% on £20k (min £3k) £24 a year fee
lloyds does 4% on £5k (min £4k) plus Choice of one Lifestyle Benefit from three options each year per account – dining offers with annual Gourmet Society membership, 6 Vue cinema tickets, or an annual magazine subscription from a selection of titles.
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You then have to take tax into account. Banks will typically take 20% off unless you have declared you are a non-taxpayer or it is held in an ISA. If you are a higher rate tax payer then you will owe the extra tax in your tax return.
Thanks but this is for a current bank account so its only paid up to £3000 So just want to see what they would pay in every month as interest.
£3000 x 3% = £90 a year
£90 / 12 = £7.50 a month pre tax
£7.50 minus 20% so around £6 a month but it would vary by a few pence each month due to the way the calculation is done.
That sounds good then so may open that account then but also keep the one i have to as that gives £5 a month
i was just thinking of taking £3ooo out of my savings account which is rubbish interest rate as they all are now and then that £3000 would get 3% which is more then savings account.
I know you have to pay a certain amount to get the rates but im weekly paid so i just have 2 weeks paid into one account ( £5 a month interest ) then 2 weeks paid in other ( 3% account ) then just keep doing that.
No its a Tesco Current Account! just looks good as you get club card points as well.
The TSB Account wont stay 5% after a year it will drop. The Tesco one seems to stay at 3% until they decide to change it
Dave
May I ask how you know the TSB account will drop? I only ask because the TSB employee I spoke to told me it should be around for a few years.
I've had a look around this morning at various sites such as money saving expert and none of them mention an introductory rate. I opened an account in branch and it wasn't mentioned then and I don't recall seeing it mentioned in any of the paperwork I have.
I think these offers exist because of the new ISA rules. ISA's used to be around the 5% mark but now you can put 15 grand in a year banks are understandably limiting the interest on them. They still need to attract customers however so are creating these high interest current accounts and putting limits on them.
Nope, the TSB website makes it clear "this is not an introductory offer" and the 5% will be there "for the foreseeable future".
http://www.tsb.co.uk/current-accounts/classic-plus-account/?WT.ac=A00013
That's exactly what I do with my TSB accounts except it is £500 with TSB. I have two TSB accounts and have standing orders set up on both to send £500 to the other on a same day each month.
You'd need to read the T&C of the individual accounts. For example, I think Santander's 123 Account has a £500 pm requiremnt, but doesn't count transfers between accounts.
That's just from memory , though.
Fund the account with £500 a month (excludes internal transfers). A minimum balance of £1,000 is needed to receive interest.
Set up at least 2 Direct Debits. You’ll get monthly cashback on selected household bills you pay by Direct Debit
Transfer from other banks is fine. true of all bank accounts.
you also get up to 3% on bills
lloyds does 4% on £5k (min £4k) plus Choice of one Lifestyle Benefit from three options each year per account – dining offers with annual Gourmet Society membership, 6 Vue cinema tickets, or an annual magazine subscription from a selection of titles.
and tsb does 5% on £2k