TSB Classic Plus Account – A UK Current Account Paying 5% Interest
You could be forgiven for thinking that the prospect of finding a UK current account paying 5% AER* interest would be a dream from the distant past. Actually though, this is just what is being offered from UK high street banking chain TSB with their Classic Plus Account. So what do you need to know about the TSB Classic Plus Account?
Eligibility for the TSB Classic Plus Account
As with most bank accounts which offer a higher or increased rate of interest, TSB do ask that you fulfil a few monthly requirements to be eligible for the 5% AER interest rate.
The first of these requirements is that you need to deposit at least £500 into the account each month. This should easily be manageable for the majority of people and is actually quite a low monthly deposit requirement when you compare it to other accounts offering a similar kind of special interest rate deal.
TSB do also ask that you register for both Internet banking and paperless statements which again, shouldn’t be too much of a problem for most customers. Internet banking has proven to be an excellent tool for helping banking customers to control their money and manage their accounts. Paperless statements are also effective and best of all they are environmentally friendly, which is an important issue for a lot of people these days. Less paper equals less waste and more trees, a win-win.
One good thing about the Classic Plus Account from TSB is that there is no requirement or initial commitment to move all of your day to day banking over to them when you first open your account. As long as you meet the requirements outlined above, you can still keep your current account open with your existing bank and move all of your day to day banking arrangements over as and when you want to, if you want to. This means you can get a feel for how the online banking interface works before deciding whether or not to commit all of your banking arrangements to the account. If you would prefer to switch all of your arrangements over from the start then TSB say that they can help you with the switching process and they state that in most cases they can have the switch fully completed within a 7 working day period.
What if I’m already a TSB banking customer?
If you already have an account with TSB this will not prevent you from applying for the Classic Plus Account, as it is on offer to both new and existing customers.
What are the specifics of the 5% interest deal?
As mentioned in the first subheading, in order to benefit from the 5% AER level of interest you need to make sure that you are depositing at least £500 into your TSB Classic Account each month. On top of this it is also important to understand that the 5% AER level of interest only applies on balances up to £2000.
One other important positive aspect of the Classic Plus Account is that the 5% AER level of interest is not an introductory offer; it is a rate which TSB intend to apply to the account for the foreseeable future.
So if you regularly hold a healthy positive balance in your current account but you don’t really feel that your balance is high enough to commit some money into long term savings or investment accounts, then the Classic Plus Account could be a nice way for you to put your money to work whilst still keeping it easily accessible.
*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if the interest was paid and compounded each year.