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  • FIRST POST
    • studentneedingmoney
    • By studentneedingmoney 16th Mar 17, 3:21 PM
    • 2Posts
    • 0Thanks
    studentneedingmoney
    Only getting 0.1% interest - there must be somewhere better!
    • #1
    • 16th Mar 17, 3:21 PM
    Only getting 0.1% interest - there must be somewhere better! 16th Mar 17 at 3:21 PM
    Ok so I'm almost ready to go to uni but haven't got a confirmed place yet so I can't access a student account for another few months. I've always been with HSBC and am happy with my current account, but I recently go a letter saying that my savings account interest rate is being dropped from 0.5% (already low) to an insulting 0.1%! Sure enough, the last few months have shown me getting a whopping 2p per month :|

    Considering that I'm saving up for university, a few measly pence over half a year is outrageous. Does anyone have any suggestions as to another option for a savings account where I could earn a little bit more without having a steady income to rely on to access the top accounts (such as needing to invest £1,000 per month to get the top interest rate)? I add just short of £100 a month probably.
Page 1
    • JohnRo
    • By JohnRo 16th Mar 17, 4:14 PM
    • 2,424 Posts
    • 2,178 Thanks
    JohnRo
    • #2
    • 16th Mar 17, 4:14 PM
    • #2
    • 16th Mar 17, 4:14 PM
    You don't have to add, for example, another new £1,000 each and every month to those accounts.

    The rule is simply that the required minimum amount passes through the account each month.

    Two accounts requiring a minimum £1,000 paid in each month can both use the same £1,000 in any proportion.

    As long as the £1,000 amount is moved out and back in via the other qualifying account both accounts will earn the interest due on whatever proportional amounts they've held that month.

    Some people have a dozen or more accounts and simply daisy chain the required sums to qualify for the headline interest payments, alongside tesco DD's for those that require them.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • chockydavid1983
    • By chockydavid1983 16th Mar 17, 4:25 PM
    • 422 Posts
    • 237 Thanks
    chockydavid1983
    • #3
    • 16th Mar 17, 4:25 PM
    • #3
    • 16th Mar 17, 4:25 PM
    Also, if an account requires £1,000 to be paid in per month, you can just pay in £500 and remove it if you want twice and that will qualify.
    • ColdIron
    • By ColdIron 16th Mar 17, 4:34 PM
    • 3,375 Posts
    • 3,949 Thanks
    ColdIron
    • #4
    • 16th Mar 17, 4:34 PM
    • #4
    • 16th Mar 17, 4:34 PM
    A Tesco current account will give you 3% when they start accepting applications again and there are no monthly funding requirements

    A Nationwide FlexDirect current account will give you 5% and needs £1,000 per month so just move your £100 in and out 10 times for the first month. Then your £200 five times for the second month etc

    I assume you are 18 or older
    Last edited by ColdIron; 16-03-2017 at 4:36 PM.
    • alanq
    • By alanq 16th Mar 17, 4:37 PM
    • 3,716 Posts
    • 2,380 Thanks
    alanq
    • #5
    • 16th Mar 17, 4:37 PM
    • #5
    • 16th Mar 17, 4:37 PM
    See Top Savings Accounts in Quick Links below the thread title.
    I'm a Board Guide on the Budgeting and Bank Accounts, Savings & Investments, Food Shopping and Over 50s MoneySaving boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • Pincher
    • By Pincher 16th Mar 17, 4:38 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    • #6
    • 16th Mar 17, 4:38 PM
    • #6
    • 16th Mar 17, 4:38 PM
    Sounds like you are a mature student, if you have "always been HSBC"

    So, are you saying you are too young to apply for the usual 3~5% accounts?
    • molerat
    • By molerat 16th Mar 17, 4:42 PM
    • 16,992 Posts
    • 11,177 Thanks
    molerat
    • #7
    • 16th Mar 17, 4:42 PM
    • #7
    • 16th Mar 17, 4:42 PM
    Myself and MrsM must be millionaires as between us we pay £10K into our current accounts each month ......... or maybe that same £1K goes round in a big circle ending up back where it started
    www.helpforheroes.org.uk/donations.html
    • studentneedingmoney
    • By studentneedingmoney 16th Mar 17, 5:12 PM
    • 2 Posts
    • 0 Thanks
    studentneedingmoney
    • #8
    • 16th Mar 17, 5:12 PM
    • #8
    • 16th Mar 17, 5:12 PM
    Hi all. Yes I'm 18 so would qualify for any account so long as I have the money. I always feared a bank suspending my account for repeated transfers as it's essentially cheating the system, but if it is what most people do, then I suppose it's worth a shot.
    • JohnRo
    • By JohnRo 16th Mar 17, 5:40 PM
    • 2,424 Posts
    • 2,178 Thanks
    JohnRo
    • #9
    • 16th Mar 17, 5:40 PM
    • #9
    • 16th Mar 17, 5:40 PM
    All you're doing is complying with the operational terms and conditions of the account, cheating has nothing to do with it.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • mark13
    • By mark13 21st Mar 17, 8:53 PM
    • 283 Posts
    • 130 Thanks
    mark13
    Switch bank accounts, Tesco maybe.
    Win Dec 2009 - In the Night Garden DVD : Nov 2010 - Paultons Park Tickets :
    • Cisco001
    • By Cisco001 22nd Mar 17, 12:24 PM
    • 2,677 Posts
    • 1,135 Thanks
    Cisco001
    Try TSB or Tesco. Those 2 don't need direct debit requirement.

    You probably need 2 current accounts such that you can move money around for the pay in requirement.
    • droopsnoot
    • By droopsnoot 22nd Mar 17, 1:04 PM
    • 1,057 Posts
    • 665 Thanks
    droopsnoot
    but I recently go a letter saying that my savings account interest rate is being dropped from 0.5% (already low) to an insulting 0.1%!
    Originally posted by studentneedingmoney
    Think yourself lucky - my NatWest eSavings account now pays a surely-not-worth-calculating 0.01% AER.


    (Note to Natwest though - I still want it, even though it's hardly anything).
    • toomsie
    • By toomsie 22nd Mar 17, 1:13 PM
    • 51 Posts
    • 13 Thanks
    toomsie
    Ok so I'm almost ready to go to uni but haven't got a confirmed place yet so I can't access a student account for another few months. I've always been with HSBC and am happy with my current account, but I recently go a letter saying that my savings account interest rate is being dropped from 0.5% (already low) to an insulting 0.1%! Sure enough, the last few months have shown me getting a whopping 2p per month :|

    Considering that I'm saving up for university, a few measly pence over half a year is outrageous. Does anyone have any suggestions as to another option for a savings account where I could earn a little bit more without having a steady income to rely on to access the top accounts (such as needing to invest £1,000 per month to get the top interest rate)? I add just short of £100 a month probably.
    Originally posted by studentneedingmoney

    Give bitcoins and gold and silver a try.
    • jimjames
    • By jimjames 22nd Mar 17, 1:55 PM
    • 12,008 Posts
    • 10,446 Thanks
    jimjames
    Give bitcoins and gold and silver a try.
    Originally posted by toomsie
    I can't tell if you're being serious or joking. If it was a serious reply then it's a ridiculous suggestion for someone looking to have money available for university and either of those things could vary massively so you could end up with a lot less than you started with. You might as well suggest investing in shares which would be equally reckless.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • teddysmum
    • By teddysmum 22nd Mar 17, 3:22 PM
    • 8,217 Posts
    • 4,891 Thanks
    teddysmum
    Try TSB or Tesco. Those 2 don't need direct debit requirement.

    You probably need 2 current accounts such that you can move money around for the pay in requirement.
    Originally posted by Cisco001
    Tesco's current account has been unavailable to new applicants since February 11th,with no sign of a new opening date.


    However, even their internet saver pays 0.96%, which is more than the OP is earning at present.
    • picks
    • By picks 22nd Mar 17, 6:13 PM
    • 173 Posts
    • 62 Thanks
    picks
    There certainly is: move to Argentina where I'm informed the interest rate is currently 29.50%.
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