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Adult Bank Accounts

Last updated: 23 August 2016

For too long have consumers put up with poor rates and deals from banks, but from September 16 2013, the banking sector was shaken up when the Payments Council introduced the Current Account Switch Guarantee.

The new rule means customers can walk into a bank and ask to have their account moved elsewhere within seven days. the bank must take care of moving all payments coming in and out of the account.

The idea is that switching bank accounts should be entirely hassle free and in the favour of the customer.

Most bank have signed up to the initiative – banks and building societies have signed up who will display a trust mark sign in their branches, so that the customer can be sure that they can move easily should they be unsatisfied with the service.

So, with this new rule, it is very likely that competition on the high street will heat up as banks try and keep hold of their customers who should not hesitate to switch if they find a better service and deal elsewhere.

After all, high street bank savings accounts are the simplest and easiest way to save for many – and although the return on your money is far from great, it beats putting your hard earned cash under the mattress.

But, like with many things, always shop around and keep reviewing!

MMM has researched the market and below are some of the best rates around – but don’t forget, if there’s a bonus rate attached, then switch accounts when the rate expires, which is usually in around 12 months.

Currently, MMM rates the Santander 123 account, which can give you up up to 3% cashback on everyday spending such as communication bills, or 2% on gas and electricity. But that’s as long as you have a regular income.

First Direct is offering new customers £100 if they switch accounts and Halifax will give you £100 if you switch to its current account. But please make sure the account suits your needs, rather than which one gives you the most free cash.

MMM has listed some current accounts below which offer the best interest rates and deals.

Current Bank Accounts

Account Name
Interest Rate AER
Withdrawal Limits
Minimum Investment
Santander 123 Current Account Up to 1.50% (£2 monthly fee). Plus cash back. No limits £500 a month
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Halifax  Reward Current Account £100 if you switch your account to them, plus £5 every month if you pay £750 or more, stay in credit & have 2 Direct Debits No limits, but must stay in credit £750 each month
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First Direct Current Account £125 for new customers. No in-credit interest but does have a 6% interest savings acc for 1st Account holders. No limits £1000
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Tesco Bank Current Account 3% on balances up to £3,000, plus Club Card points No limits £750 per month (or a £5 monthly fee)
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If you want to put some money into basic savings and don’t need it immediately, then below are some of the best rates around. Banks often refer to these as bonds, but they are just fixed rate accounts, where you can save for a certain period for a set interest rate:


Limited Access Accounts

Account Name
Interest Rate AER
Withdrawal Limits
Minimum Investment
Halifax Online fixed saver 1.80% None allowed- 5 year fixed term £500
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Tesco Bank Fixed rate saver 2.60% None allowed. 5 years fixed term £2,000
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Shawbrook Bank  Fixed rate bond 2.80% none until 20/01/2015 £1
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What you should know

  • If you open an account with a bonus rate, make sure you switch accounts once the bonus has expired as you will no longer be getting the best rate around
  • When opening your account, check that the back is covered by the Financial Services Compensation Scheme (FSCS). Most banks and building societies will be covered, but it’s always best to check the small print.

The FSCS can pay you compensation should your bank or building society go bust. Most individuals and small business are covered, but the compensation is limited to £85,000 – which means, if you have more than £85,000 with one bank in total, you will not be compensated for anything above £85,000.

  • Do not put all your eggs in one basket – it is best to try and save in a number of ways if you have the money to do so. This will help safeguard your money should something go wrong with one particular type of account


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Reduce your grocery bill by 70% this summer!

The kids are off school and they are going to be hungry – inevitably, the next few weeks will see the cost of your weekly shop shoot up.

To help families keep the costs of food shopping down, MMM put Approved Food to the test, which can help slash the cost of shopping by as much as 70%.

There is of course one catch – the food is past or close to its sell-by date, but perfectly safe.

With a £30 budget, MMM managed to bag a fair amount – cereals, tinned food, sweets and treats, drinks and even laundry detergent and dishwasher tablets – the sort of things where you can generally ignore the date stamped on the product.

If you’ve tried reducing the cost of the grub by switching brands or shopping at discount stores but think you can do better, then try Approved Food  – you’ll be surprised at just how much you could save on some store cupboard essentials.

New products are available everyday and there are some real bargains. For example, Sprite Zero 330ml for just 29p or a 2kg Reeses Peanut jar for just £2.99. There’s even stuff for pets, at more than 50% off.

MMM was really pleased with service and surprised at just how at just how much £30 would buy (see pic above/ instagram).

Although we would like to see Approved Food cut down on the cardboard packaging, the items arrived well packed and in excellent condition.

So, if you’re looking to save a few more pounds on your groceries, take a look at Approved food – you’ll be surprised at just how good the bargains are.


Keep up with MMM on Twitter @MumMoneyMatters and Facebook !


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