The great current account trick - Video script

Find out the trick that all savvy savers know

If you have a decent chunk of money to put away, I’m going to show you how you can earn a great return using high interest current accounts. This will take a little effort to set up, but once you’ve done that, it’s all plain sailing.

How do you get started?

You’ll need to open four separate current accounts and deposit the maximum balance allowed in each to earn the generous rates on offer.

First of all, apply for an Alliance & Leicester Premier Direct account which pays 5% on the first £2,500 of your balance. Don’t bother paying in any more than that because the rate drops to just 0.1%.

At the same time go for the Santander Preferred In-Credit Rate account which works in the same way, and deposit another £2,500.

You’ll also need to open the Lloyds TSB Classic with Vantage account which pays 4% on balances between £4,000 and £7,000. You should pop £7,000 in this account

Finally, the Halifax Reward account can be opened with just £1 and will pay you a £5 bonus each month you pay in £1,000.

All this means you have deposited a total of £12,001 across the four accounts.

What happens next?

All these accounts must be funded with at least £500 or £1,000 every month, so you’ll also need an additional floating £1,000 sum to transfer between them.

Your first step is to stick the £1,000 floating sum into the Halifax Reward account so the starting balance is £1,001. Next you set up a standing order to transfer this amount to the A&L account on the 1st of every month.

On the 7th of every month you set up another standing order to move the same £1,000 out of A&L and into the Santander account. Then arrange another transfer to move your floating £1,000 from Santander to Lloyds TSB on the 14th of each month, and then set up a final standing order back to the Halifax account each month on the 21st.

I know it sounds a bit complicated but once you’ve opened the accounts and set up transfers from each one, the banks will do the rest for you.

Your returns

You may be wondering if all this is worth it. Well, by shunting your money around for the next year, you could earn a total of £590. So, why not give it a go?