Get access to a Regular Saver Account - Put away between £25 and £300 for a fixed 12 month term. If you save £300 every month for 12 months and qualify for the 7.00% AER/gross p.a. interest rate, you'll earn approximately £136.50 interest (gross). Interest is calculated daily and paid 12 months after you opened the account. AER stands for Annual Equivalent Rate. This shows you what the rate would be if interest were paid and compounded each year. Gross is the rate of interest if interest were paid and not compounded each year. No partial withdrawals allowed. Early closure will result in interest being paid at the standard account variable rate. SPECIAL OFFER - Switch to a 1st Account and bank £175*. £250 interest-free overdraft (subject to status). No minimum monthly funding and no monthly account fee. No first direct fees for when spending abroad, withdrawing cash from the UK or when making a debit card payment in a foreign currency in the UK. Mobile banking app. UK based contact centre. *Open a 1st account on or after 9th September and before offer is withdrawn. Switch your everyday banking to using the Current Account Switch Service (CASS). Deposit a minimum of £1,000 (in single or multiple deposits) in your account and within 45 days of opening your first direct 1st Account. Complete a full CASS switch including at least two Direct Debits or Standing Orders must be made within 45 Days of us opening your first direct 1st Account. Register and Log onto digital banking, within 45 days of us opening your first direct 1st Account. Use your new 1st account debit card at least 5+ times. Be a new customer to first direct, who has not previously held a first direct product, or has opened an HSBC current account on or after 1 January 2018
Available for existing Santander Edge Account customers only. 6.00% AER / 5.84% gross (variable) interest up to £4,000 with 1.50% AER / 1.49% gross (variable) bonus rate for the 12 months from opening. you’ll need to continue to hold a Santander Edge current account to stay eligible for Santander Edge Saver
Available for existing NatWest current account holders only. Access to Digital Regular Saver - deposit £1-£150pm, 6.00% Gross/6.17% AER pa (variable) on 1st £5k, 1.49% Gross/1.50% AER pa above £5k. Free anytime instant access to your savings. No minimum term
Available for existing Royal Bank of Scotland current account holders only. Access to Digital Regular Saver - deposit £1-£150pm, 6.00% Gross/6.17% AER pa (variable) on 1st £5k, 1.49% Gross/1.50% AER pa above £5k. Free anytime instant access to your savings. No minimum term
Available for existing Chase current account customers only. Chase Saver Account pays 3.50% AER (3.45% gross) variable. Interest earned daily and paid monthly. No minimum deposit, instant access to your savings. No minimum term
3.00% AER/2.96% gross (variable) on balances up to £25,000. Must pay a minimum of £1,500 into the account each month. Must have 2 active Direct Debits. Arranged overdraft facility (subject to status).
Current accounts' interest rates vary considerably, but some current accounts pay highly attractive rates of interest – often better than many dedicated savings accounts.
The drawback is that current accounts tend to have relatively low deposit limits above which you will earn no interest. It is therefore usually sensible to keep as much of your savings as possible in a high-interest bank account, then put the rest in a different current account or other type of savings account.
Current accounts generally have two different interest rates – the one they charge you when you are in credit and the one you pay when you are overdrawn. Different current accounts are likely to be more appealing than others depending on whether you tend to be in credit or not most of them time.
AER versus APR
When people talk about interest rates, they will usually refer to an interest rate that is a certain percentage AER or APR.
APR stands for Annual Percentage Rate and is usually quoted for the interest you will pay on loans and credit cards.
AER means Annual Equivalent Rate and is used for the interest you earn on your savings. AER is the amount you would earn if your interest was only paid once a year, whereas in reality current accounts usually pay interest monthly.
