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Advice about Internet Bank Accounts

Apologies if this has been discussed recently, I'm sure it will have been. I have had a look on Google at past discussions but thought I'd see what the current state of affairs was.

My girlfriend and I wish to open a joint bank account to pay for shopping, bills etc. An internet account appeals, because any spare cash sitting there will earn better interest than a high-street current account. The requirements for this would be:

- Be able to pay money in by standing order and direct debit from our existing accounts. For example, paying X amount in once a month by standing order, and the ability to top up the account with a direct debit link (similar to the way ING works).

- A switch card each, for shopping and bills.

- A good online service with a decent interface etc. Currently using NatWest and ING which I'm pretty happy with, and also HBOS which is passable but not fantastic.

- A decent rate of interest on spare cash floating around, so we don't have to worry about skimming it off into a savings account every few weeks.

Not that bothered about having a cheque book, as anything that needs paying for by cheque can come out of NatWest and the money can just be transferred into that account for the purpose.

I'm considering Cahoot, Smile and FirstDirect at the moment. Cahoot seem to be the best at first glance, 4.1% on the current balance, plus a £250 interest free overdraft, but of course I'd like to hear people's opinions of the relative merits and problems of the online and telephone services offered by each of these. Are there any particular ones to avoid, and which others exist that I should be considering?

If relevant, I will be employed full time with a regular income, but my girlfriend will still be a full time student. If anyone knows of any special offers etc that this joint status may allow us to take advantage of we'd be pleased to hear about them.

Thanks in advance for your contributions, and once again sorry for bringing up a popular topic.

Reply to
Tom Robinson
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Intelligent Finance will give you 4.5% on the current account balance provided you keep at least £1 in the savings account. They don't have an interest free overdraft though.

Reply to
Jonathan Bryce

Thanks for the suggestion. Had a look at their website but it quotes

2.75% , are you sure the 4.5% isn't for those with offset mortgages or something? We don't have a mortgage.
Reply to
Tom Robinson

Looking at

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- its the last bullet point.

I have a IF current account and a DAS with about a fiver in and get 4.5% AER paid each month paid on my current account balance and certainly don't have a mortgage, loan, credit card, overdraft etc that is offset

chris

Reply to
Chris

Ah, I see. "Open Direct Access Savings with as little as £1 and earn the savings rate of interest on your entire current account balance." Surely something they should be advertising a bit more prominently? Seems pretty generous for a cross-sell to give an extra 1.75% just in the hope that you might use their DAS account. I already have an ING account, although I suppose the IF DAS is the same rate of interest.

What are peoples experiences of the online interfaces and telephone support of IF, Cahoot, etc?

Reply to
Tom Robinson

Does it have to be a bank ? If not, consider Nationwide Building Society. Web interface works well, interest rates are good etc.

Robert

Reply to
Robert

"Tom Robinson" wrote

What possible benefit could there be to anyone, to actually transfer any money from the current account to the DAS account - once it is open and the

1 is there? I mean, is there anything you can do with a DAS account that you can't do with the current account?? [I can see everyone just putting 1 in DAS, leaving it sitting there untouched, and only ever using the current account ... !! ]
Reply to
Tim

Is this the account you're talking about?:

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If so, I don't think this would suit us as you have to pay in over £1000 per month to get the higher interest rate, and I don't think we'll be doing that (hope not anyway!). Thanks for the suggestion though.

Reply to
Tom Robinson

I like the Nationwide Internet system. But information can be a little buried.

One option for you is to open a Flexaccount ( 0.5% interest with no regular investment ) and an e-savings account (4.75%).

Flexaccount is a 'feeder' for the e-savings.

Then just transfer from e-savings to Flexaccount as and when you need cash in a 'current account'.

You just have to be careful that you have the funds available at any given time.

[If you go abroad, their CC is the cheapest- AFAIK]

HTH

Flop

Reply to
Flop

I have been with smile for about 4.5 years and very happy with the service. Interest rate is about 3%. Good points:

1) Free cash withdrawals from any Link machine (250 per day or 500 for joint accounts) 2) Web site is quite easy to use. 3) If you call them, they will normally answer the phone within 30 seconds.

Bad points:

1) Not that many Co-op banks should you need to withdraw more than the daily limit. 2) Can't download statements.

Recently I got a letter from Lloyds TSB offering me 70 if I switch my account to them. I am considering the offer.

Lasitha

Reply to
Lasitha

Thanks, but the transferring money around different accounts is one inconvenience I particularly wish to avoid. I'm not that bothered about making much off the interest as there's unlikely to be huge sums sitting in there for very long, but I'd like to get a little more than the high-street banks 0.001% or whatever.

Reply to
Tom Robinson

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