TSB is a popular choice for customers who keep their accounts in the black due to its Classic Plus current account paying 5% AER (4.89% gross) on credit balances up to a ceiling of £2,000. (max interest of £97.80 per year – paid monthly).
On top of this headline credit interest offer, TSB customers can currently earn 5% cashback on the first £100 of contactless debit card related spending each month. (max £60 per year).
This week the challenger bank upped the ante when it announced that its Classic Plus current account customers using a TSB Credit Card will, in addition, also be able to earn 1% cash back on the first £500 of monthly spend (max £60 per year) until 30th September 2017.
Verdict: If you’re someone that doesn’t dip into the red then this is an excellent opportunity to earn nigh on £220 per year in cashback and interest payments without having to jump through hoops to benefit.
If you use an overdraft from time to time (greater than the £25 free limit) then the £6 monthly overdraft usage fee and 19.94% EAR interest rate could soon take some of the gloss off this offer.