A&L eSaver withdraw loophole

Tomk

Hi moneysavers,

Is it just me or have I found a way to withdraw from A&L eSaver without much loss of interest?

Keep savings in A&L eSaver issue 2, at the beginning of the month, withdraw all savings to A&L current account (instant transfer) keep amount you need and deposit to another savings account, let's call it helper account (i.e. A&L eSaver issue 1 which should be instant). At the beginning of the next month withdraw all savings from issue 1 and deposit to issue 2. Et Voila! Loss of interest (6.6% - helper acc int rate)/365*(no days from 1st of month till deposit into helper) plus the same for the next month.

I'd appreciate any constructive comments on that.

kazwookie

Sorry can you explain that again slowly.

As I understood A&L esaver if you with draw in any month except July you loose all interest for that month

foreverbrassic

Tomk wrote: »

Hi moneysavers,

Is it just me or have I found a way to withdraw from A&L eSaver without much loss of interest?

Keep savings in A&L eSaver issue 2, at the beginning of the month, withdraw all savings to A&L current account (instant transfer) keep amount you need and deposit to another savings account, let's call it helper account (i.e. A&L eSaver issue 1 which should be instant). At the beginning of the next month withdraw all savings from issue 1 and deposit to issue 2. Et Voila! Loss of interest (6.6% - helper acc int rate)/365*(no days from 1st of month till deposit into helper) plus the same for the next month.

I'd appreciate any constructive comments on that.

You are correct, I have done it, you'd think they would have closed this loophole.

EalingSaver

kazwookie wrote: »

Sorry can you explain that again slowly.

As I understood A&L esaver if you with draw in any month except July you loose all interest for that month

In more straightforward terms: if you need to make a withdrawl, empty the account of all money to the bare miniumum (if it has one) and do it on the 1st of the month; put it somewhere else to earn interest in that month. then put it back in at the start of the next month.

Using an A&L current account, and e-saver issue 2 as the 'linked' and holding savings account is a twist which minimises lost interest while cash is in transit.

Tomk

So to explain it for kazwookie:

1) You usually keep your savings in eSaver issue 2
2) When you want to make a withdrawal, you withdraw all of it (you may need to leave one pound) on the 1st of the month to your current account. If it's with A&L that transfer is instant. If the 1st is on a weekend you do it on Monday. You lose interest on eSaver for that month.
3) As soon as the money has been tranferred in your current/nominated account, you keep as much you want and you deposit the rest in another savings account (If it's A&L eSaver issue 1 then the transfer is instant). You earn interest in that account for the remainder of that month. The difference in the interest rate between those 2 accounts at the moment is 0.01%pa. If you divide that by 365 days in a year, then the difference in the interest is 2.7pence per day per 1000 pounds.
4) At the beginning of the next month you withdraw your savings from eSaver issue 1 (have the option of keeping some of that money) and you deposit it back to eSaver issue 2. You lose interest for that month on issue 1 but you gain the interest on issue 1.

So as an example if you have 5000 in eSaver issue 2 and you need to withdraw 1000, then with the above technique you lose 2.7p*5*30 = £4.05 in one month but you get the option to withdraw.

Now this is useful for an emergency. If you do the above every month or every other month, then eSaver issue 2 may not be as competitive. I haven't actually done my number crunching re competitiveness.

Hope I have managed to explain and not confuse you more.

freddysmith

Or just get a B&B internet eSaver 3 account (6.51%) and save yourself the hassle in the first place..

YorkshireBoy

Tomk wrote: »

Hope I have managed to explain and not confuse you more.

I think you've confused matters more by trying to "explain it for kazwookie".

1. The difference in rate is 0.1%, not 0.01% as you posted. This means all your subsequent figures are a decimal place out.

2. Why do you wait until Monday to move your money when the 1st of the month falls on, say, Saturday? Don't you unnecessarily lose 2 days interest that way? If the transfers are instant, why not move the monies around on Saturday 1st?

3. You said "you lose interest for that month on issue 1 but you gain the interest on issue 1". One of these is issue 2 isn't it?

The_Fiddler_2

I know what you are saying, and I worked it out a long time ago with e-Saver 1 and Direct Saver although I have never put the theory into practice.

guli

I don't think you can have two esavers open at the same time, it's not allowed.

echelon101

Quick question

How do you transfer money in? I know you are meant to use the sort code 72-58-10 then 00000000 as the account number but I can't find my number starting with 171 or 174 all I have is a 384 number any tips?

innovate

do you do this for money, or for the satisfaction to have caught A&L programmers? if the former, how much?