Cash point; PAGE 41 RECORD Wednesday, September 16, 2015 MORE AT DAILYRECORD.CO.UK CITYDESK For mortgage advice you can't afford to miss, follow Money Doctor Fergus Muirhead's series of special reports at www.dailyrecord.co.uk/all-about/mortgage-advice.
Byline: WITH TRICIA PHILLIPS
TESCO Bank are removing the PS5 monthly fee on their current account for all new and existing customers from tomorrow.
It comes hot on the heels of Santander increasing fees on their popular 123 account from PS2 per month to PS5 in January.
Both pay interest on credit balances - Tesco three per cent on up to PS3000 and Santander up to three per cent on up to PS20,000.
Santander customers with smaller credit balances may need to do their sums to ensure they get the best deal.
A PS3000 average credit balance with Santander would earn PS72 interest annually - PS48 after the current PS24 fee - but just PS12 after the PS60 fee in January.
But PS3000 with Tesco earns PS72 (after tax) fee-free and with TSB Classic Plus, paying five per cent on up to PS2000, it would be PS80 (after tax) fee-free.
Andrew Hagger, from Moneycomms.co.uk, says: "If your account isn't delivering the best return don't hesitate in taking your custom elsewhere. It's quick and simple with the current account switching service where your new bank does all the work for you."