5% Savings Loophole

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  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    dcollie87 wrote: »
    Hi.

    I'm looking into possibly buying my first house soon but still not sure when (could be in a month or even a years time). It says that applying for lots of bank accounts can affect your credit score. Does anyone know for how long it affects it? I would like to use this loophole but not if it ends up making it difficult for me to get a mortgage further down the line...

    Thanks for your help

    It shouldn't have much effect as if you apply without asking for an I redraft you won't be accessing credit.

    In reality all the banks have different criteria, and to be cautious only open a couple of accounts say every six months I would have thought.
  • DavidConnNI
    DavidConnNI Posts: 1 Newbie
    This may have been covered already and if so I apologise. Does anyone know if it is possible to open three Halifax accounts (two sole and one joint) as a couple and still receive the £5 monthly bonus?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    DavidConnNI wrote: »
    This may have been covered already and if so I apologise. Does anyone know if it is possible to open three Halifax accounts (two sole and one joint) as a couple and still receive the £5 monthly bonus?
    It has...in the account T&Cs on the Halifax website.
  • Westie983
    Westie983 Posts: 5,213 Ambassador
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    DavidConnNI wrote: »
    This may have been covered already and if so I apologise. Does anyone know if it is possible to open three Halifax accounts (two sole and one joint) as a couple and still receive the £5 monthly bonus?

    Not any more, its one sole and one joint, still £10 a month for possibly a low balance, mine averages 0.01p each month.
    I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.
    Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%
    Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%
    Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%
    Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%
    £2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%
    The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%
    Total £4095.19/£7332.95 = 55.84%
  • pjala
    pjala Posts: 420 Forumite
    First Post First Anniversary Combo Breaker
    Not sure whether anyone has mentioned this, but you can also get a double bonus from Nationwide Flex Plus. No need to transfer money in and out, but you get 3% on up to 2500, and you pay £10 per month for home start car breakdown/family travel insurance/+1 year added to guarantees on electrical goods. The interest without tax, is only just short of the £10 per month - so if you pay for breakdown anyway for instance, its a bargain.
    If someone else has said this on this thread already, apologies.
  • KTF
    KTF Posts: 4,820 Forumite
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    Am not sure its a 'bonus' as I make the interest £6.25 a month (gross) on £2500 at 3% per annum.

    I agree if you are already using some of the products that come packaged with the account then £3.75 a month makes them good value but if you don't need them its not so attractive.
  • mattyrobuk
    mattyrobuk Posts: 1 Newbie
    Great article. Despite a bit of leg work once a month and the lengthy face-2-face meetings with a bank worker to set up the account, the 4% rate on a sum like £30k is very appealing. Just one thing missing from the article's monied examples, it doesn't factor in the switching incentive bonus (often £100-150, but currently £200 with HSBC!!!). Which would of course better that 4%! Off around £15k this year I'll earn effectively 5.5%.


    Can I ask, how does a return rate of 4% off £30k compare with safe, distributed stock market investment returns, generally speaking?


    Thanks
    New Forum member
  • digannio
    digannio Posts: 314 Forumite
    First Anniversary Combo Breaker First Post
    Something like Artemis Monthly Distribution Fund - which has a mix of global equities and bonds - has a three-year cumulative performance of 40.9%. When you use the word "safe", obviously nothing is guaranteed and the last three years is no guide to the next three. In terms of how risky it is, if the FTSE 100 has a risk score of 100 the Artemis fund stands at 47. Usual caveats apply, ie, I know nothing:)!
  • soldave
    soldave Posts: 59 Forumite
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    edited 18 October 2016 at 5:59PM
    Not sure if this has been posted but TSB will be changing the rate on January 4th 2017 from 5% AER up to £2,000 down to 3% AER up to £1,500.

    Think I'm going to have to do some moving/closing of accounts in the next couple of months.
  • peter_333
    peter_333 Posts: 123 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Was thinking the same re: closing some of my high-interst current accounts, but on second thought, they're still the best short-term, low-risk option out there.
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