Whilst standing in the queue around the corner from work to get some cash out this morning (because my normal ATM is on the fritz) I spotted this promotional board out the front of the bank branch. Now, ignoring for a second the fact that the account’s designed for the over 50’s…
Clearly the 6% is meant to be the eye-drawing thing, otherwise they wouldn’t have made it so big, bold, contrasty, or put it in the middle of the poster. 6% seems an attractive number for an interest rate to be at the minute – many savings accounts offer lower rates than this, and this is a current account (meaning you can Do Stuff with it).
Now, is there more to this, or have I got it right in that the fine print specifies “on balances up to £2,500”, meaning the maximum interest you could actually reap from this would be £150?
Given that a £10 monthly fee applies, this means you’re going to benefit to the tune of £30 for the year. Sort of closer to a return of 1.2%. Well, minus any tax you pay on the interest, of course.
Maybe there’s nothing particularly remarkable about this when compared with other current accounts – I think mine’s a tenner a month in fees, and I’m pretty sure the rate isn’t 6%… I guess the limiting of the 6% to the first £2,500 only effectively takes “SELLING POINT!” and adds a footnote of (* not a real selling point).
Ah, who cares?