Some banks require that you pay in your salary each month, so always read the small print carefully first.
When there's a deflationary period.
For example, if you tend to be overdrawn frequently and switch to a reward bank account purely because it is offering cashback, but it has expensive overdraft charges, you might be better off with an account with no cash bonus, but low overdraft fees.
This means you meet the requirements of all the accounts and earn the most interest possible on the whole sum.Variable interest rates apply to your savings these are calculated daily.Gross : Gross rates are variable and do not take into account deductions of income tax.At lower tiers, these accounts become less competitive.Until April gifts for soccer lovers 2019, you earn one Clubcard point per 1 spent at Tesco in addition to normal Clubcard points.Bank of Scotland, classic.Far too many have a concrete savings mindset that shouts "don't spend your capital!" Yet in a deflationary environment that's too rigid; anyone living off savings interest would face huge cuts in their income, and not spending capital would actually be penalising yourself.Sometimes however, the reward may take a different form.This, or very low inflation, can actually be a boon to savers.Using high-interest current accounts to boost your savings Given the poor rates of interest offered on savings accounts, many savers are opening multiple high-interest current accounts to maximise their returns.For example, the Santander 123 account is the only one paying interest on balances up to 20,000, as well as up to 3 cashback on bills paid by direct debit from your 123 account.
Tesco Bank 3 on 3,000 until April '19 The Tesco Bank current account pays 3 on balances up to 3,000, guaranteed until April 2019, though you'll only get this rate if you pay in 750 and maintain three direct debits (excluding those transferring money.
Benefits, the benefits of this type of cash back current account are clear a cash lump sum or other reward when you switch your account over.