6 reasons to save in a current account

Savings accounts have traditionally been thought of as the sensible place to stash your cash in order to generate a real return, but after years of falling interest rates, that's no longer the case.

"A lot of savvy savers have been looking for alternatives, and current accounts have become a very real possibility," says Rachel Springall from Moneyfacts. So what's on offer?

1. Better interest

The best reason is you get better interest than standard savings accounts, up to 5% in fact with TSB. You can compare high-interest bank accounts here.

2. Easy to switch

It's so easy and simple to move your current account using the Switcher Service, check with the bank if they are part of the scheme and you can have a brand new account in just 7 days. Find out more about switching accounts here.

3. Get something extra

Get cashback while you get interest! Santander’s 123 current account pays you cashback on certain direct debits, up to 3%, along with the 3% interest!

4. Little and often

So long as you meet any funding requirements, you can use the current account to gradually build a nice nest egg, so don't worry about putting away big amounts in your account.

5. More the merrier

There's no reason why you can't have more than one account, you can move money from one to the other to meet criteria to earn interest, just make sure to keep tabs on all transactions!

6. Beware of the overdraft

If you plan on using a current account to save, be wary of going overdrawn, as this can void your interest deal, so play safe to earn!

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