Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • MSE Amy
    • By MSE Amy 30th Jun 14, 11:42 AM
    • 27Posts
    • 36Thanks
    MSE Amy
    5% Savings Loophole
    • #1
    • 30th Jun 14, 11:42 AM
    5% Savings Loophole 30th Jun 14 at 11:42 AM

    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Page 39
    • dcollie87
    • By dcollie87 29th Jun 16, 1:27 PM
    • 1 Posts
    • 0 Thanks
    dcollie87
    What about credit checks?
    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
    • bigadaj
    • By bigadaj 29th Jun 16, 5:04 PM
    • 7,787 Posts
    • 4,743 Thanks
    bigadaj
    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
    Originally posted by dcollie87
    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
    • By DavidConnNI 1st Sep 16, 8:01 PM
    • 1 Posts
    • 0 Thanks
    DavidConnNI
    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
    • By YorkshireBoy 1st Sep 16, 10:44 PM
    • 28,271 Posts
    • 16,095 Thanks
    YorkshireBoy
    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?
    Originally posted by DavidConnNI
    It has...in the account T&Cs on the Halifax website.
    • Westie983
    • By Westie983 3rd Sep 16, 1:04 AM
    • 3,214 Posts
    • 12,574 Thanks
    Westie983
    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?
    Originally posted by DavidConnNI
    Not any more, its one sole and one joint, still £10 a month for possibly a low balance, mine averages 0.01p each month.
    Save 12k in 2016 #16 Total £14650/£12000 = 122.08%
    Sealed Pot Challenge ~ 10 #97 Total (£252) +£13/£300 = 88.33% ( x 10)
    Xmas 2017 £1 a Day #6 Total £34.00/£365 = 9.31%
    Virtual Sealed Pot #1 Total £800/£800 = 100.00%
    £2 Savers Club 2016 #104 Total (£1060)+£386/£2000 = 72.30%

    Total £17195.78/£15465 = 111.18%
    • pjala
    • By pjala 20th Sep 16, 2:44 PM
    • 383 Posts
    • 141 Thanks
    pjala
    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
    • By KTF 20th Sep 16, 2:50 PM
    • 4,452 Posts
    • 1,801 Thanks
    KTF
    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
    • By mattyrobuk 24th Sep 16, 10:15 AM
    • 1 Posts
    • 0 Thanks
    mattyrobuk
    Saving or Investing?
    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
    • By digannio 24th Sep 16, 11:04 AM
    • 143 Posts
    • 72 Thanks
    digannio
    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
    • By soldave 18th Oct 16, 5:39 PM
    • 38 Posts
    • 8 Thanks
    soldave
    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.
    Last edited by soldave; 18-10-2016 at 5:59 PM.
    • peter_333
    • By peter_333 18th Oct 16, 5:40 PM
    • 8 Posts
    • 2 Thanks
    peter_333
    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.
    • soldave
    • By soldave 18th Oct 16, 6:00 PM
    • 38 Posts
    • 8 Thanks
    soldave
    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.
    Originally posted by peter_333
    True. I also have to move some DDs around to my BOS accounts as they stopped gaining interest from September and now need two DDs as well as money going into them each month.
    • King Drax I
    • By King Drax I 23rd Nov 16, 9:24 AM
    • 63 Posts
    • 32 Thanks
    King Drax I
    Reflections on 5% Stooz method
    I've just started setting this system up as described, in the last week or so. I thought I'd write up my observations about how it's worked so far.

    Here's my account set:

    I've set up a second Club Lloyds account as a joint account with my daughter; my main Club Lloyds account I already have is in my sole name. With Santander; I already have a sole and a formerly joint account. This is because my wife died recently, and two sole accounts are allowed if one of them was formerly a joint account which then becomes a sole account.

    I have opened three Bank of Scotland (BoS) Classic Vantage accounts, applied for two Tesco accounts and I have also opened a Nationwide and a TSB account.

    To avoid problems with multiple Credit checks, I applied for all these accounts at the same time so that the credit checks they do a) won't affect the current set of applications and b) they will all drop off my recent records together in three months or so.

    Nationwide needed me to show some ID down at my local branch, which I did after the weekend (I set up these accounts on a Friday). It's probably going to take just over a week to set up the Nationwide account all in; I am currently awaiting my account details.

    Tesco Bank take a good while to send you your documents to be signed, however you do get a few txt messages keeping you updated. And although I applied for two accounts at the same time, I have only heard back from them about one of them. They say about the second account that they are doing 'further checks' - this caution may be due to their recent hacking attack.

    BoS was a doddle setting up three accounts together, but I did have a minor hiccup. I always check my money-movement systems between stoozing accounts and my main account by sending £5 - £10 each way, before transferring the main stooz pot in. This kind of activity flags up with their fraud team as it's the sort of thing that fraudsters do, apparently, and my online account servicing was locked. A simple phone call to their fraud team unlocked everything, and the phone number to call is given to you when the 'account locked' screen comes up*.

    TSB take a while to get their stuff to you; this too may be a week or more. My pack hasn't come yet. Like with Nationwide, you're not given account access immediately although you are given your sort code and account number. Nationwide don't tell you anything initially about numbers etc. Not that I'd use the account until I have the online banking system set up anyway....

    Timing of Direct Debits (DDs) - for the first month, you might not get any interest with account requiring DDs, because your DDs may not collect in time. It all depends on whether you can change your DD sourcing over in good time, and the outcome rests entirely on the timing of your next DD collections with respect to the 'month definition' held by that particular bank. This doesn't cost any fees, as long as you are moving the right amount of money in/through your accounts, but you don't get the interest in any month when the DDs are not paid. However, if your money was just sitting in a bank account above the earnings limit, this won't be a loss, it just won't be a gain. And the interest will be paid the next month once the DDs have collected.

    My final observation is that overall the whole thing takes a week to ten days to set up, but once it's in place, and the DDs are firing properly, it should work.

    *Oh and the people at BoS knew exactly what I was doing in opening three accounts - doing it for the interest. They're not stupid , but of course it's all within the Rules....
    Last edited by King Drax I; 23-11-2016 at 9:31 AM.
    • King Drax I
    • By King Drax I 3rd Dec 16, 12:26 PM
    • 63 Posts
    • 32 Thanks
    King Drax I
    Update on my applications in respect of my previous post.

    Nationwide still haven't finished setting things up. The account has taken ages to open and although I now have my debit card PIN and account details, I now need a 'card reader' device to enable me to set up online banking. The whole thing is a mess.

    I applied for the second Tesco account the day after the first application. My first account is up and running, but hte second account has not shown up on their radar at all. I reapplied online today and was told there was a 'problem' and could I contact them. I phoned up and eventually spoke to someone who said that, the same as my first application, they would have to do 'further checks'. So I will be waiting a few days to see if my application is successful. Not all that impressed with Nationwide, whose operators didn't seem to know about how to set up online banking, nor with Tesco who have to carry out far too many 'further checks'. But at least all the operators are friendly enough.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

319Posts Today

1,210Users online

Martin's Twitter