Overhaul your Personal Banking

Your Saving Plan SUCKS: Here’s How to Fix It
Save 100s of £££ with just a few simple changes


First of all, who is this guide for? It’s for YOU if…


…you’re in the UK

…you never go overdrawn

…you need quick and easy access to your cash. But you’re also able to leave it alone to actually avail of the interest.


If the person above isn’t you, I’d suggest grabbing Ramit Sethi’s I Will Teach You to be Rich from Amazon and implementing it ASAP. His second chapter is what inspired this guide.


Before We Start


Maybe you have a decent banking setup, or your bank offers something better than whatever I list here. Check all your options.


What I’m going to do is list the UK bank accounts with the best interest rates and incentives. List the requirements for each and then show you how to piece it all together for various savings amounts.


Top Interest Earning Accounts


As of now (May 2016) the bank accounts offering the highest return on your rainy day fund aren’t ISAs or savings bonds. They are good old current accounts.


Some limitations include minimum monthly payins and some require a minimum number of active direct debits. But I’ll cover the ways around those.


Most also need you to have paperless statements and alerts enabled. Which is great, who needs more bloody letters in the post? Unless they’re cheques!

Santander 123: Offers 3% on balances from £3000 – £20,000 (potentially £600 a year). There’s no interest on balances below £3k or above £20k.


It has got a monthly fee (£5) but pays cashback on any bill payments made from the account. (3% on phone, broadband, mobile and TV. 2% on gas and electricity. 1% on water, council tax and santander mortgage payments.)


The cashback from bills usually wipes the £5 monthly charge and leaves you with some extra change.


Minimum pay in of £500/month.




Club Lloyds: 4% interest on balances of £4000 – £5000.


Minimum monthly pay in of £1500 (with a £5 charge if you miss this).


Also requires two direct debits going out each month.




TSB Classic Plus: 5% interest on savings up to £2000.


Minimum monthly pay in of £500 and no direct debits required.




Nationwide FlexDirect: 5% interest up to £2500 (for 1 year only).


Minimum pay in is £1000 and no direct debits required.




Tesco Bank: 3% interest on balances up to £3000.


No minimum pay in and no direct debits required.




Halifax Reward Current Account: Pays £5 per month and gives you £100 for switching.


Minimum pay in of £750, 2 active direct debits required and account must stay in credit for the entire month to get the fiver.


(Miss any of those and you don’t get paid, but you can redeem yourself the following month).


To get the £100 you must use their switching service (which is seamless) and can’t have already claim cash back from them in the past.




Putting it all Together


How to link this all up to work in your favour a.k.a. the liver and brainzzzz.


The simplest way to do this is break down your level of savings. Then go to the appropriate section.


  • More than zero

  • £2000

  • £2500

  • £4500

  • £7500

  • £8500 – £9500

  • £12500

  • £15500 – £32500

More than Zero


First grab the Halifax account here:




As long as you stay in credit, pay in £750/ month and have two direct debits, they pay you £5 a month.


Use the switching service to switch from your old current account and you’ll get £100.


Potential gain: First year £160, every year after £60


Examples of direct debits are automatic credit card payments etc. If you don’t have any direct debits, set up two £1 a month payments to charities.


How it looks:



£2000 in Savings


Grab the Halifax account mentioned in More than Zero.


Now open this account and deposit your £2000: http://www.tsb.co.uk/current-accounts/classic-plus-account/


Minimum pay in is £500 a month. Pay ins only need to be from any external source. So you can just use another bank account that you own!


Set up a standing order to pay £500 into the TSB from Halifax. Then setup a standing order for the following day to send the £500 back to Halifax.


Potential gain: First year £260, every year after £160


Optional: The TBS account gives you access to a regular saver account with 5% interest for 1 year. Max pay in is £250 per month.


After 1 year you’ll have £3000 saved and have earned £80.64 in interest. Close this and transfer the cash after 1 year.


How it looks:



£2500 in Savings


Grab the Halifax account mentioned in More than Zero.


Now open this account and deposit your £2500: http://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits


This account offers 5% interest on balances up to £2500. But the interest only lasts for 1 year. Minimum monthly pay in is £1000.


Potential gain: First year £290 (including £100 Halifax bonus). After year one you’ll have to transfer the cash and close the Nationwide account as the interest rate drops for 1%.


Optional: Nationwide regular saver account offering 5% interest for 1 year, max pay in is £500 per month.


After 1 year you’ll have saved £6000 and earned £161.29 in interest. Transfer this after the year is up*.


How it looks:



£4500 in Savings


Grab the Halifax account mentioned in More than Zero.


Grab the TSB account in ‘£2000 in Savings’ and grab the Nationwide account in ‘£2500 in Savings’.


Again the regular savers are optional (but recommended).


Potential gain: £390 in the first year (including £100 Halifax switching bonus).


In the second year you’ll be closing and transferring the cash from nationwide to a different account*.


Optional: With the TSB and Nationwide regular savers you’ll have £3000 and £6000 saved earning £80.64 and £161.29.


Again close these after the first year and transfer the cash.


How it looks:


£7500 in Savings


Follow ‘£4500 in Savings’ and then open this account: http://www.tescobank.com/current-accounts/ it allows 3% on a max of £3000. Potential interest per year is £90.

£8500 – £9500 in Savings


Follow ‘£4500 in savings and then open this:




It gives 4% on balances of £4000 – £5000 pounds. It’s costs £5 per month but it’s free if you pay in £1500 per month. So setup a rotating standing order.


To get the interest you need to have 2 direct debits per month. If you have none, setup two £1 donations to charities.


Potential gain: You’ll earn up to £160 on £4000 and up to £200 on £5000.


How it looks:



£12500 in Savings


Follow the plan from above (‘£8500 – £9500’) and then open the Tesco account listed for savings of £7500.


How it looks:



£15500 – £32500 in Savings


You’ll follow the instructions for ‘£12500 in Savings’ and then open the following account:




It charges a fee of £5 per month but gives cash back on certain bills (Santander mortgage payments, council and water tax, gas and electricity bills, home phone, mobile, broadband and TV package bills).


This cash back has the potential to wipe out the £5 charge.


It also give 3% interest on balances of £3000 – £20,000.

To get these benefits you need to pay in at least £500 per month and have 2 direct debits.


You’ll earn £90 per year on £3000 and up to £600 per year on £20,000.


How it looks:



* Note: After the first year, you may be wondering what to do with your Nationwide Flex Direct account (it only has good interest for 1 year).


Transfer most of the cash somewhere else and then opening an account with a switch bonus.


These bonuses come and go all the time on different accounts, but here is one that’s currently running with First Direct:






While this may seem like a pain in the dick to setup (and for potentially such little gain compared to investments). Remember this is for savings. Safety money incase shit hits the fan. The stuff you don’t want to risk.


Once you have enough in your rainy day fund then you can start to look at investment funds etc where you can potentially gain a lot bigger (but there’s also the risk of losses).


This information is only valid as of now (April 2016). As interest rates rise ISAs will regain power.


And remember the banks could pull these deals and rates at anytime.


Never fucking settle 🙂

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