Earn Higher Interest on Your Current Account

Lloyds TSB is one of the larger banks in the UK that has not decided to change their bank accounts for the worse yet. In fact they are offering a current account at the moment in which the interest will be 4 to 6 percent APR. This is considered the Plus Account. The bank stated that all new accounts that are opened before July 13th 2008 will be able to receive this interest rate.

At the moment a lot of the current accounts are offering .1 percent interest to be earned on current accounts. This means that if you open a new account with Lloyds you can be earning up to 60 percent more interest on your account. You do need to have 1,000 pounds per month added to the account.

If you are already a consumer with Lloyds you probably won’t be allowed to get this interest. You might want to call up and ask if they have deals for loyalty consumers, but chances are you won’t be able to get the 6 percent interest. In some cases they may allow you to be added to the Value Accounts, but again this is only if you are able to make the high deposit each month.

Other banks are also trying to get more consumers into their bank. They are offering some pretty cool deals to make you switch banks, but you should also be wary of the changes.

Alliance, Abbey, Coventry, and Halifax are four banks offering deals right now. These deals are going to require direct deposit and a monthly deposit of 500 to 1000 pounds. The interest rate being offered is between 5 and 8.5 percent. However some of the interest rates being offered will only apply to the first deposit or the first 2500 pounds put into the account. Then the interest rate reverts back to the .1 percent.

As you can see a lot of the banks want your business, but they are only willing to offer the deal for a specific amount of time. For example Abbey is offering a deal for 8 percent interest in the first 12 months, but you still need to make a very high deposit each month and there are specific terms and conditions. Coventry is also offering credit balances where you can earn 4.75 percent AER, but how many will actually be able to keep the 250,000 pounds in the bank needed for this offer?

Added to the interest rate changes other banks are offering welcome bonuses. First Direct is going to give you 100 pounds for opening a current account with their bank. To get the 100 pounds there are terms and conditions. They are even offering another deal. They say that after six months you will love the bank so much that the offer of getting another 100 pounds free will not tempt you, but that deal is there for the taking. To open the account you have to have a salary of at least 1,500 per month. They are not offering interest on the account though.

Back To Financial News June 2008

100 Percent Mortgages
36 Percent Fall in First Time Buyer Loans
Arrangement Fees for Mortgages
Bank Account Situations
Bank Accounts Are Changing
Buy to Let Mortgages
Cotton Traders Scam on Credit Cards
Credit Card and Loan Insurance Changes
Credit Card Insurance a Scam?
Credit Cards: A Source of Desperation
Current Account for UK Consumers
Debt Consolidation Loans Can Help
Earn Higher Interest on Your Current Account
Fixed Rate Mortgages Increasing
Halifax and Mortgages
Insurance in the UK
Loan Insurance
Loans from First Direct
Lower Credit Card Fees?
Monlink and Mobile Banking
Mortgages in Recovery
Payday Loan Companies
Payday Loans and Pawn Shops
Payday Loans can be a Problem
Payday Loans Increase Debt Issues
Quick Money Option
Reverse Mortgages Have Advisers Concerned
Secure Loans
Stolen Card Details Used in Hotel
US Debt Worsen which Could Affect UK