Bank of Scotland Current Account with Vantage Will Require Two Direct Debits to Earn Interest

Written by Karen Bryan

bank of scotland debit cardFrom 2 September 2016, holders of a Bank of Scotland Current Account with Vantage will need to pay a minimum of two direct debits each calendar month in order to earn interest. This new requirement is in addition to funding the account with at least £1,000 per month.

I have the maximum permissible three Bank of Scotland Current Accounts with Vantage. I keep the maximum balance of £5,000 in each of these current accounts, allowing me to earn 3% interest on the £15,000. I don’t have direct debits set up from any of these current accounts.

It seems that the door is closing on the counter intuitive ploy of using high interest current accounts to earn more interest on your money that you can in a savings account.

The monthly fee for the Santander 123 Current Account, which pays 3% interest on balances between £3,000 to £20,000, increased from £2 to £5 earlier this year.
I am left wondering where on earth to put my savings in order to earn a decent rate of interest.

The highest rate I could find on an instant access savings account with UK Financial Services Compensation Cover is 1.3% with the West Brom.

That’s 0.1% more that I receive on my Nationwide Loyalty Saver instant access account, despite being a member of the building society for more than 15 years. Evidence that loyalty doesn’t pay.

In order to quality for the M&S Bank Monthly Saver, which pays a fixed rate of 6% on a maximum monthly payment of £250, customers must now pay at least two direct debits a month from their M&S Current Account.

I received an email yesterday information me that the interest rate paid on my Newcastle Big Home Saver is reducing from 1.75% to 1.5% on 8 July 2016.

Rates of interest correct on 7 June 2016.