Finance: Expert discusses impact of inflation on a savings account
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Specifically, Defaqto explored the different products being offered by Nationwide Building Society, Virgin Money and Barclays. Other banks analysed by the firm included Lloyds, Monzo, Santander and Bank of Scotland, however their feature offerings prove to be limited. While experts are skeptical with the particular financial incentives of switching accounts at this time, the features included in many current accounts could provide families a much needed economic boost.
Nationwide Building Society
The building society is offering £100 to switch to any of their Flex accounts, which includes its standard FlexAccount and FlexDirect products, or its added value account FlexPlus.
Existing members with Nationwide will receive £125 if they decide to change from one account to another.
Nationwide’s Flex account products are currently offering two percent on balances upward of £1,500.
However, anyone interested in this account must pay up to £1,000 each month to qualify for this.
READ MORE: State pension dismay as 500,000 miss out on boost
Anyone looking to switch to Barclays, the bank’s Premier account, will receive 25,000 Avios points.
While the bank does not offer any unique rates, these points can be used towards paying for flights.
However, to be eligible for this account customers have to have a minimum income of £75,000.
This bank is offering its customers that switch to its M Plus (standard account) and Club M account (added value account) a Virgin Experience Days gift card, which is worth £150.
The M Plus is Virgin’s standard current, while its Club is its added value account for keen savers.
Currently, the Virgin Money M Plus Account is offering a 2.02 percent on balances up to £1,000.
On top of this, account holders with Virgin will not need to pay any monthly minimum deposits or charges.
Katie Brain, Banking Expert at Defaqto, advocates that consumers “shop around” for the best deals when deciding which account to get.
She said: “For those who are looking for a new current account, it is worth shopping around to get the right product for your needs.
“The switching incentives are tempting but it is important to think long-term about how you will use your account and make sure you choose what is best based on that.
“Having a current account that works for you is vital to staying on top of your finances. Many of the modern accounts offer digital tools to help you manage your money.
“There are budgeting tools that allow you to categorise your spending, alerts to let you know when you are getting low on funds and even tools that let you pay cheques in by uploading a photo of them.
“You can’t assume that all banks offer the same features as there are differences between them.
“With so many features and benefits on offer, you should be able to get an account that not only offers a home for your cash but helps you to take control of your finances too.”
Source: Read Full Article