Old Story - 5% gross - semi easy access account

CharlieCai

There are quite a few savings account recommeded in this forum. However, I believe the best savings account was missed in 2009, which I mentioned in this forum before: Abbey (Now Santander) First Home Buyer's Saving Account (5%).

This account pays 5%, which is better than any other savings account. This is a regular saving account designed for First Home Buyers. So it is not for those who have a property under their names. However, it does not stop you if you have no intention to buy your home, if you dont have a home. You should be able to use it as a normal savings account.

Initially you can deposit up to 5000 pounds and top up between 100-300 account each month. If you falls below 100 or top up more than 300 in any month, you will lose insterest for that month. The maximum balance for this account is 50K.

To withdraw the cash, you have to have a mortgage appointment in a branch and close the account after the appointment. You dont have to take a mortgage though.

The loophole:
1. Say you have 30,000 and need a safe place
2. You open this account with 5,000 pounds deposit
3. For the first month regular savings SO, you transfer 25,000. The penalty for it is loss of that month interest. So you want to do it as late in that month as possible, given enough time for the account to be processed.
4. Make sure you setup standing order to transfer 100 pounds each month to the savings account after that.

When you close your account, you earns 5% each month for that 30K. Outperform all the existing savings accounts!

Mikeyorks

I think you need to read the responses more closely????

http://forums.moneysavingexpert.com/showthread.html?t=2118101&highlight=first+home

........... in particular post #15.

In attempting to exploit the so called loophole ....... they will terminate the account. And you'll get 0.1% for your overall trouble.