From: whitely525@yahoo.co.uk
Newsgroups: uk.finance
Subject: =?iso-8859-1?q?Re:_=A32500_Current_Account_Ceiling?=
Date: 4 Mar 2007 12:06:24 -0800
   posting-account=AUXwog0AAABIH84t1tiwGGc-zyjT0LEw

On 4 Mar, 19:21, "biggirlsblouse"  wrote:
> "Will"  wrote in message
>
> news:1173021808.103355.79660@8g2000cwh.googlegroups.com...
> Does anyone know why so many of the high interest current accounts
> only pay high interest up to =A32500 whereupon it drops to 0.1%
> typically? I'm "forced" to have 2 accounts whereas I would have
> thought it would would be in everyones interest (no pun!) to have a
> single account paying higher interest for the more one saves.
>
> Thanks
>
> Will
>
> As John Boyle say its a marketing thing, gets them in the best buy tables
> AND makes people switch current accounts from another provider. Having sa=
id
> that =A32.5k is quite a large baance to have in a current account (well i=
t is
> for mine!) and being with the Halifax if the balance gets higher than tha=
t I
> transfer any excess into the halifax websaver account which gives a decent
> return on balances above =A32.5k of 5% and to which I can transfer immedi=
ately
> cash backwards and forwards without any delays.... its just a question of
> keeping track of the balance.

And keeping track of the interest rates.

I would not be taken in by any of the inducements to change current
account.
The only exception would have been the late-lamented Zurich(?) account
that guaranteed
to match base rate.  AFAIR they reneged on this guarantee and had to
pay people
compensation.



> Just another ball to keep your eye on I am afraid.....