Best Bank to go with??

[Wee Kaz]

Can anyone help? I'm currently with the Bank of Scotland and am looking to close it and open up an account with someone else. I'd like a current account and a savings account, any suggestions who's the best with the highest interest? Telephone banking would have to be a must!!

[Miss Zippy]

With regard to current accounts, it appears that Cahoot and Lloyds TSB are curently paying some of the highest interest rates on current accounts - 3.30% and 3.15% respectively. However, they do not necessarily have the best overdraft interest rates if you need this facility. With regard to savings, if you haven't already used up your annual allownce (�3k), then you really should open up a mini cash ISA, where you can expect to receive gross interest of around 4.0% to 4.35%, which is tax free. Most banks and building societies offer ISAs. Portman and Bradford and Bingley offer the best rates at the moment. If you've already used your ISA allowance, then National Savings Certificate are another good tax free option, but you have to invest lump sums, rather than regular monthly amounts. Other options (though interest rates are not as good as cash ISAs and NS) are savings accounts with notice periods and internet or postal accounts, which generally offer higher interest rates than other savings accounts. Have a look at moneyfacts.co.uk which is a really good and easy to use site.

[whiskygalore]

I've had my bank account with First Direct for years and I'm always telling people to go through them. They offer telephone and internet banking and excellent service - never had a problem with them. Not too sure if their interest rate is good or bad, but the other aspects are great.

As for a savings account, Northern Rock's Internet savings account is offering 4.1% (introductory offer), Halifax's Internet is 4%, or Alliance and Leicester offer a branch account with 3.3% (not sure if this is telephone banking).

If you want to keep up to date with interest rates, I recommend buying The Guardian on Saturdays, which includes the Jobs and Money supplement, which lists the most competitive interest rates each week.

[smithers]

the sperm bank !

[doh!]

The Banks that do offer the higher interest on accounts normally have conditions that mean you never get anything anyway once the taxman gets his share! You're better off going to a Bank that's committed to Customer Service so at least if something did go wrong you know they'd take responsibility to sort it out - plus you're better off sticking your dosh in a savings account with immediate access! Try an ISA for savings and any of the 5 main Banks for an account.....

[BadlyHungBoy]

Hi Kaz - I'm with wg: and First Direct. If I had more money I'd probably pay more attention to things like interest rates but I can't fault them for service.