New research from Which? shows that you could be losing out on the chance to earn interest on your current account.
Over the past five years we have seen the number of standard current accounts offering interest on credit balances plummet.
We tracked the market and found that while in 2008 there were 20 accounts offering up to 8% interest on credit balances of £1,000, today there are just five accounts paying interest (up to 5% on the same balance).
Despite the Bank of England Base Rate remaining static at 0.5% since 2010, the number of accounts paying interest has halved during that time – from 10 accounts to just five.
Customers of high street banks, Barclays, HSBC, NatWest and RBS will not earn any interest on their bank accounts.
Best for credit interest
Bank of Scotland, Coventry Building Society, Lloyds TSB, Nationwide and Santander are the only banks offering interest on their standard current account, paying 2%, 1.1%, 2%, 5% and 1% respectively (on balances of £1,000).
Bank of Scotland/Lloyds TSB’s Classic with Vantage account and Santander’s 123 account are the only accounts to have introduced interest on credit balances. It’s worth noting that the Santander account charges a monthly account fee of £2.
Although Halifax doesn’t pay interest on credit balances, it does offer a reward of £5 each month you pay in £1,000.
Switching your current account
If the lack of credit interest available on your bank account has persuaded you to switch your provider, read our guide to switching your bank account to find out how to go about it.
Switching your bank account may seem like a daunting prospect, but it’s easier than you think.