5% Savings Loophole

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  • colsten
    colsten Posts: 17,597 Forumite
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    St.Jimmy wrote: »
    I'm 21 years old and don't plan on any big applications such as a mortgage for another few years so I'm hoping that opening these accounts now won't effect my score for long?


    Multiple current account applications this month/quarter/year will have no impact on your ability to get credit in a few years time. Searches for applications will drop off after a max of 24 months.

    If you keep all your accounts in good standing, they will only have a positive impact on your credit worthiness.
  • St.Jimmy
    St.Jimmy Posts: 8 Forumite
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    colsten wrote: »
    Multiple current account applications this month/quarter/year will have no impact on your ability to get credit in a few years time. Searches for applications will drop off after a max of 24 months.

    If you keep all your accounts in good standing, they will only have a positive impact on your credit worthiness.

    Thanks for the quick reply :) Thats put my mind at ease!
  • Mycatscalledozz
    Mycatscalledozz Posts: 2 Newbie
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    Everyone should take up the Halifax reward account, as well as giving you £5 a month When it came to renewing my tax credits I did not have to declare the £60 from Halifax.
  • savings_my_hobby
    savings_my_hobby Posts: 363 Forumite
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    yes - the reward £5 a month thing is handy, you need 2 direct debits paid from that account so be aware of that
    Earn, Save and Achieve
  • nqtraderman
    nqtraderman Posts: 28 Forumite
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    I am single and would like to take advantage of this method to deposit £45K in various accounts. Being single I cannot open any joint accounts.

    I already have 2 Halifax Reward and a Santander Current account for the past year that have standing orders shuffling minimum deposits between them so all my Direct Debits are used up by those two banks.

    Which other banks should I open accounts / multiple accounts with to get a 4% return without the need for further Direct Debits ?

    thanks
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    Direct Debits are required if you want a 4% account, and it's luckily not an issue to create any number of additional DDs. Just open a couple of Tesco Savings accounts and you are in business. Plenty of information about multi accounting on the forum.
  • berbatov10
    berbatov10 Posts: 372 Forumite
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    A question around this. I have various accounts, some opened recently to spread money around and get the best interest rate. I also recently checked my experian credit score which had been affected by this. It suggested I dont apply for any more accounts in the short term. Are others aware of this?
  • jimjames
    jimjames Posts: 17,619 Forumite
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    nqtraderman wrote: »
    I am single and would like to take advantage of this method to deposit £45K in various accounts. Being single I cannot open any joint accounts.

    I already have 2 Halifax Reward and a Santander Current account for the past year that have standing orders shuffling minimum deposits between them so all my Direct Debits are used up by those two banks.

    Which other banks should I open accounts / multiple accounts with to get a 4% return without the need for further Direct Debits ?

    thanks
    You don't need DD for a tsb account.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    berbatov10 wrote: »
    I also recently checked my experian credit score which had been affected by this. It suggested I dont apply for any more accounts in the short term. Are others aware of this?

    As I don't open accounts with Experian, I entirely ignore them and their credit scores and recommendations.

    I have opened a lot of current accounts in the last couple of months (to add to the many I already had) and have not had a problem with any of them. I also still get regular guaranteed credit card and loan offers.

    Everybody's situation is different, though - if you are looking to apply for a mortgage in the next 6-12 months, then it might be prudent to slow down with current account applications.
  • jimjames
    jimjames Posts: 17,619 Forumite
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    berbatov10 wrote: »
    A question around this. I have various accounts, some opened recently to spread money around and get the best interest rate. I also recently checked my experian credit score which had been affected by this. It suggested I dont apply for any more accounts in the short term. Are others aware of this?

    Are you requesting overdraft facilities with them?

    That would make a difference to a credit report. Current account with no facility to borrow shouldn't but credit scores in themselves are pretty meaningless.
    Remember the saying: if it looks too good to be true it almost certainly is.
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