New current account pays zero interest and charges £3 monthly. Is this Britain's first honest bank?

Richard Dyson
Updated
Ruth and Amy Anslow with Jack Simmonds: all are co-founders of hiSbe, a community-based grocery store in Brighton which borrows from Triodos - Simon Dack Photography
Ruth and Amy Anslow with Jack Simmonds: all are co-founders of hiSbe, a community-based grocery store in Brighton which borrows from Triodos - Simon Dack Photography

Dutch-founded Triodos Bank is the latest provider to offer a current account, available from today.

So what? Just another bank account: cue the mushy adverts featuring horses galloping across beaches; cue the celebrity sports sponsors and the temptingly high in-credit interest rates (that inevitably get slashed soon after).

Cue the useless add-ons like mobile phone insurance. Except no. Not this time. For once, this current account proposition is genuinely unique.

For starters, you’ll earn zero interest on balances. Zip. And you’ll pay a £3 monthly fee. Unappealing? Perhaps, but there’s one thing going for this account: it’s honest.

Triodos bosses reckon this is roughly what it costs to provide banking. It wants to attract customers who are happy to pay a fair price in exchange for services from a bank with a transparent business model and an ethical stance on who it lends to.

One feature - again highly unusual, if not unique, among banks - is that Triodos publishes details of every organisation it lends to. So even if you're not earning interest on your balances, you can find out who is benefiting.

Triodos banking cards
Debit cards that come with the new Triodos current account are made from sustainable plastics

Will people sign up? I have no idea, but being honest with customers about how they pay for the services they use will be a first in the banking world. Good luck to Triodos.

But if top payers matter most, which bank accounts are best?

Currently Nationwide offers the top rate of 5pc on balances up to £2,500. This is only paid for a year - after that it drops to 1pc. Customers need to pay in £1,000 a month.

Tesco Bank pays 3pc on balances up to £3,000. Tesco has guaranteed its 3pc rate until 2019. However, it's recently changed the criteria of its current account - new customers must set up three direct debits and pay in £750 a month. Old account holders will continue to earn 3pc on balances up to £3,000 without a minimum pay in.

Santander cut its attractive 3pc rate that it paid on balances between £3,000 and £20,000 to 1.5pc on November 1. 

However, it is still competitive for those with larger balances. Plus, savers can earn up to 3pc cashback on selected household bills - 1pc is offered on water bills and council tax and the first £1,000 of a Santander mortgage each month, 2pc is paid on gas and electricity bills and 3pc can be earned on mobile and landline phone bills, broadband and TV packages.

There is a £5 monthly fee which adds up to £60 a year. Savers must also pay in £500 a month and set up two direct debits to qualify for the account.

For more high interest current accounts see here.

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