How to earn £500 a year by doing nothing (No, it’s not a Ponzi scheme)

Okay, full disclosure: Most ‘money-for-nothing’ deals are admin heavy for little return, but here are two that actually do pay out. 

#1 The Current Account

Santander’s 123 current account pays 1.5% interest up to a £20,000 balance. If you’re able to maintain this balance, you could earn £300 a year in interest. And, btw, it’s a great place to keep easy access money such as your rainy day fund. You have to pay a £5 a month fee but this can be offset by direct debit cashbacks (think: your mobile, electricity bill, council tax). If you follow the rules, this could be a good earner!

I don’t have £20,000 saved. What are my options? 

If a £20,000, or even a £10,000 balance, is not where you’re at then the best paying current account for a smaller balance of £1,500 is TSB’s Classic Account Plus which can earn you £165 per year. Find out which account best suits you using this guide. 

Side note: Current accounts are good for easy access ‘in case of emergency’ but, if you are happy to lock-away your savings, you can earn more interest on fixed-term accounts. Here is a list of top paying accounts. 

#2 The Credit Card

Trust us, when we say you’ve got to apply for the American Express Platinum Cashback card. You’ll get 5% cashback (up to £125) for the first three months and 1.25% thereafter (as long as you spend over £10,001 a year). Use this card for most spends, especially the big ones – flights, monthly travel card, hotels, work expenses, etc – and you’ll rack up the cashback. If you put £1,000 a month on the card, you’ll earn £125 in three months and £110 in the subsequent nine. After the £25 annual fee, that’s £210 you’ll have cashed in! 

Big red flag here: Always pay off your credit card each month. In fact, set-up a direct debit so you don’t even have to think about it. The cashback isn’t worth it if you end up paying interest. 

Is there a minimum spend to make the card worth it?

The Amex card makes sense if you can spend a total of £2,500 in the first three months of having the card. Why? Because this means £125 cashback is guaranteed. A smart move is to time your card application a month before you plan to pay for a big holiday or even a wedding (especially the honeymoon). After that, you want to be able to put at least £500 a month on the card. Which means you’ll earn at least £155 in the first year and £50 a year from then on.  

MOXI Round-up

For these deals to be realistic we get that you need spare savings you’re happy to keep in an easy access account and be a big spender too – either through work expenses or because you go on lots of holidays (we’re jealous of that!). If your life fits the bill, it’s easy money.