can i do this with halifax savings account i seen on tv

dave0000

iv seen a halifax savings account on tv were they give you £5 a month if you pay a 1000 in so could i pay the 1000 in then draw it out the same day and still get the £5 and do it every month with the same 1000 i could just take it out my natwest isa and then put it straight back in the same hour so i would get £35 a year off natwest and £60 off halifax £95 off £1000 a year (- tax on £60) can i do this and if i can would i be able to do the transfers on line

melorablack

Yes but if you take money out of an ISA, I didn't think you could put it back in?

trynsave

I may be wrong (often am), but I thought Isa's could only have £3600 deposited in them during the year. Yes you may be able to withdraw the money online, but would only be able to put it back in until the annual limit is reached.

It is not that the a/c can only hold up to £3600, but only that credits totalling that amt can be made.

Also the £5 Halifax pay is after tax has been deducted at basic level, so nothing frther to pay unless you are a higher rate payer!

If you only have £1000 I'd be tempted to open 2 Halifax a/cs and tfr the £1000 between them each month, earning £10 pm = £120 pa. Much more than in the isa - just a thought.

Joe_Bloggs

@dave0000
You will lose your cash ISA allowance by an amount that is equal to the withdrawn sum of money from the ISA. Thus is you put £1000 in a cash ISA and then withdraw it you can only then put in your full cash ISA limit minus £1000. Pay in £1000 again and withdraw £1000 will leave you with a maximum cash ISA allowance of full cash ISA limit minus £2000.
J_B.
Cash ISA limits are £3600 if you are under or around 49 years and £5100 for those who will be 50 before the end of the tax year . Don't quote me on that interpretation of the cash ISA limits.

opinions4u

dave0000 wrote: »

iv seen a halifax savings account on tv were they give you £5 a month if you pay a 1000

It's a current account, not a savings account.

so could i pay the 1000 in then draw it out the same day and still get the £5 and do it every month with the same 1000

Yes.

i could just take it out my natwest isa and then put it straight back in the same hour

Your total deposits in to a cash ISA cannot exceed £3,600 in a tax year (I won't go in to the £5,100 for over 50s thing), so you'd be better using an instant access savings account, not your ISA.

so i would get £35 a year off natwest and £60 off halifax £95 off £1000 a year (- tax on £60)

The £60 is net of basic rate tax.

can i do this and if i can would i be able to do the transfers on line

Halifax limit their faster payments to £1,000 a day, but you could certainly send the funds back to the savings account that way.

soulsaver

I think the OP knows about the withdrawal/additions limit on the Isa - but he thinks out & back in an hour won't register. Whilst that may or not be the case what you certainly can't rely on is the one hour or even same day execution. FP is hit and miss, particularly so with the Halifax in my experience, and by no means guaranteed. So you'll get a bacs 3 day instead, and your isa limit is screwed.

opinions4u

soulsaver wrote: »

I think the OP knows about the withdrawal/additions limit on the Isa - but he thinks out & back in an hour won't register.

It certainly will register and screw up somebody's ISA limit.

johncolescarr

you can actually have 3 of these accounts, just open one, then open 2 more once you have an online account (you can open the further 2 in minutes). I have these and transfer £1000 when I get paid into the first one, then transfer to second, then third, then back into my normal current account. This generates £15 a month (£180 a year) for pressing a few buttons once a month

Don't take it out your ISA tho, bad idea, remember you can only put in £3600 a year, regardless of whether the funds came from your ISA in the first place, take it from your current account or leave £1000 in a high interest savings account and cycle through your halifax current accounts once a month.

miserable_ol_so_n_so

johncolescarr wrote: »

you can actually have 3 of these accounts, ........

I do have this account......but never knew you could open more than one of the same account.......Where does it say you may have 3 and no more?

rb10

miserable_ol_so_n_so wrote: »

I do have this account......but never knew you could open more than one of the same account.......Where does it say you may have 3 and no more?

It's in the Terms and Conditions.

As long as the account gets £1000 in the month, it will qualify for the £5, it doesn't matter where it came from. And it doesn't have to stay in overnight or anything like that either - so you can just do an instant transfer from your main account -> account 2 -> account 3 -> main account, all in under a minute and for an extra £10/month.

miserable_ol_so_n_so

rb10 wrote: »

It's in the Terms and Conditions.......

......

But where does it say you may open up to 3?