Two current accounts available at the moment could suit different financial needs while offering an annual equivalent rate (AER) of over five per cent.
If looking to pay in over £500 per month, the Premier Direct Current Account from Alliance & Leicester offers a 6.1 per cent AER – which is fixed until the end of 2007 ñ on balances up to £2,500 and ten per cent AER on those over £2,500.
There is no interest charged on the account’s overdraft for the first 12 months and a 5.9 per cent effective annual interest rate (EAR) thereafter. The account has no monthly fee and can be accessed online.
Alternatively, if planning to pay over £1,000 per month into a current account, the Halifax High Interest Current Account could be suitable.
It offers an AER of 5.12 per cent on balances up to £2,500 and a further 0.1 per cent AER/gross per annum for anything above this amount. The account also has an overdraft facility with a typical EAR of 15.9 per cent.
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