Abbey loophole: 5% interest on up to £50k savings (near instant access)! (Under 35s)

scott_lithgows

I,m too old for it and too wise to get any (sh)abbey account.

Special_Saver2

Technically, I think it should work.

There is nothing in the terms and conditions to say that you cannot deposit a large amount of money (e.g. £30,000) at the end of the first month as far as I can see. The Fixed Rate Monthly Saver terms and conditions say

5. b) If you deposit more than £250 in any calendar month, you
will receive the Lower Interest Rate on the whole savings
balance in the Account for the remainder of the term.

but the First Home Saver account terms and conditions do not specify this.

If a lot of people start doing this then they will probably change the terms and conditions for the First Home Saver account and / or drop the interest rate (which is variable).

If you decide to try this then post something on here to let us know how you get on.

SS2

D1zzy

Deleted_User wrote: »

I notice that the following account pays 5% interest, but you can only pay in £5000 to start and £300 per month.
http://www.abbey.com/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1210611105334&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateB2

Save – Make an initial deposit of between £100 and £5000 and then save between £100 and £300 per month by standing order to get the preferential rate. You will receive a lower rate of 0.10% gross/AER when you pay in under £100 or over £300 in any calendar month, but for that month only. The maximum balance on the account is £50,000.

However, the underlined section above seems to suggest it's possible to open this account with £100, and on the final day of the month chuck in a massive wodge of cash (say £30k), get 0.1% for the next 24 hours until the next calender month starts, and then, bingo! you will get 5% on your massive wodge of cash (so long as you keep up the monthly funding requirements) on an ongoing basis.

Downside: you have to do an interview before getting your wodge back.

Upside: 5% interest on your wodge!

Any problems with this approach?

Even if it works- It's ABBEY -:eek:we are talking about here..............................

firsttimestudent

I opened this account on 30 Nov 2009 (a few days ago). The specific T&Cs which I receive actually do cover the loopholes mentioned above:

"... If you deposit more than £300 in a single month we reserve the right to close your account."

"You must sign a declaration upon account opening to agree to attend a full mortgage interview, which you will need to attend before you close your account. This mortgage interview can take place up to 90 days before you close the account."

scott_lithgows

firsttimestudent wrote: »

"You must sign a declaration upon account opening to agree to attend a full mortgage interview, which you will need to attend before you close your account. This mortgage interview can take place up to 90 days before you close the account."

The Spanish Inquisition !!!!!!!!!!

Essex123

Opened this account with Abbey earlier this month.

Was planning on transferring a substantial 5 figure sum in via 4 x Halifax bill payments tomorrow. However looking at my passbook for another Abbey account, conventional standing orders take 4 working days to show on your account (i.e. the amounts sent tomorrow would not arrive until 4th January, so messing up my interest for next month).

So my plan now is to attempt to deposit a 5 figure cheque from my Halifax current account tomorrow. There is nothing in the T&C's which says additional deposits are not allowed. If they threaten they may close my account, I will tell them its a risk I'm willing to take.

Thoughts?

Lukehluke

If I opened this account with them, could I add it to my internet banking to check the amount thats in the Home Saver account?

anselld

Posted today on MSE News
So did anyone get away with making a large deposit then?

oxenryd

anselld wrote: »

Posted today on MSE News
So did anyone get away with making a large deposit then?

As per on other thread, on my paperwork it says "We reserve the right to close your account should you credit more than £300 in any month"
So I wouldn't chance it

[Deleted User]

anselld wrote: »

Posted today on MSE News
So did anyone get away with making a large deposit then?

Yes - as per my initial post I have had over 40,000 in the account earning 5% for the last six months. I can't believe more people haven't jumped on this bandwagon (but I guess if too many people do they'll close it so maybe it's good for me).

To the people who asked Abbey (now Santander) whether this approach will work. Of course the official line is it doesn't, but in practice they're too disorganised to enforce the limit properly and I can confirm it does work.