The new credit card stoozing? High Interest Accounts
With the low interest rates at the moment, its been really hard finding a good enough account to save, with Barclays offering a paltry 0.5% on my savings I was looking for a better deal.
It was whilst I was walking down the high street I noticed several banks offering “6% savings” which all happened to be part of the Santander group – enquiring within one, Alliance & Leciester, it seems for the moment all the banks are still operating under separate licences but offering similar deals. The 6% account comes with a catch – you need to invest £500 a month (£1000 a month with Abbey) and the limit is £2500. However, there is nothing stopping you opening up several accounts to take advantage of the deals at each and transferring the required minimum each month via an elaborate system of standing orders. The practice reminds me a lot of Stoozing where similar balances transfers are carried out by credit card 0% chasers.
If you have used up your cash ISA for this year, you may consider it (since ISA’s are offering only about 2.85% net at the moment) – you could probably invest around £7500 over three accounts, for a yearly return of around £450.
Whatever happens, I am avoiding long term bonds since I’m guessing interests rates will go up in the next few years – they simply can’t get any lower and that debt is ever increasing.





