Maximise Your Interest
The best way to currently maximise your interest is via current accounts, some of which offer up to 5% in interest.
Savings accounts and fixed term bonds are way behind and often don’t come with a current account’s flexibility. This page aims to help you identify how you can use OnePoundDD.com to maximise your interest.
Scenario 1: I don’t have enough Direct Debits
You already may have met Simon from our Features page but if you haven’t let’s re-introduce him:
Simon’s been saving up for a new car and currently has £5,000 in his bank account which pays him interest of 0.5%, equivalent to £25 a year.
Simon wants to switch to an account with Bank A which pays 4% but only if he has two paying Direct Debits. Unfortunately, he only has one Direct Debit.
But, by using OnePoundDD.com he can now add an extra Direct Debit for just £1 a month and earn £188* in interest a year, £150 a year more than before. Good job Simon.
*This figure is net of the £1/month fee.
Scenario 2: I don’t want to move my Direct Debits
Meet Jess. She already has 5 Direct Debits in her main current account and wants to set up the same 4% interest account as Simon with £5,000 earning no interest in her current bank account.
The only thing stopping Jess is she feels moving the Direct Debits will be too much hassle.
She’ll probably have to ring up each company, wait in the queue forever and then make sure there’s enough money in the account every month to pay the bill.
However, using OnePoundDD.com Jess can simply transfer the balance to earn interest on into her new bank account, set up as many Direct Debits as she needs in less than 5 minutes and at £1/month per Direct Debit she’ll never need to worry about there not being enough money in the account.
In fact, all she needs to do now is watch the extra £176* in annual interest roll in. Good job Jess.
*This figure is net of the 2 x £1/month fee.
What about the minimum transfer requirements?
Most current accounts also require you to have a certain amount of money coming into the account every month before you qualify for the higher interest rate.
To fulfill this requirement you can simply set up 2 Standing Orders (easily done via internet/telephone banking):
- From Bank A to Bank B for the minimum monthly requirement.
- From Bank B to Bank A for the same amount 4 days later (this takes into account delays in payment/weekends).
Always ensure you have enough money in Bank A to transfer out and the two payment dates fall within the same month. Going into your overdraft on either account will erase any returns you hope to gain!
Setting up your OnePoundDD.com account and first Direct Debit is incredibly easy and takes less than 5 minutes:
1. Register for an account
2. Navigate to the Members Area and select a payment date you wish to sign up on.
3. Complete the Direct Debit authorisation form and you’re all set up!
Feel free to contact us if you have any questions