Using same 1k to service multi accounts?

karatedragon

blueberrypie wrote: »

The £1000 deposits into these accounts doesn't have to be "new" money. It can easily be the same £1000 simply going around in a circle each month. Indeed, it could easily be the same £100 going around in a circle ten times each month. Or it could just be careful timing - I know there is one poster on this forum who is paid weekly but whose rent (£500) is paid monthly, and who, just before paying the rent, cycles the £500 through three Reward accounts twice.

Blueberrypie. The sums of money mentioned here are in fact quite considerable. I am trying to get my head round how this actually works. I think I would like to jump aboard this bandwaggon. What do you need to do all this? My income is about £1650 a month. So would I pay this into one of these accounts? :think::think:

tiff

If you have savings, you can transfer £1000 a month from wherever you keep it, into the Reward account and back again. If the bank you use has faster payments this can be done instantly.

So, transfer £1000 to 1st reward, into second reward, into third reward and then back to its original account. All without losing interest. You can use your wages if you like but I wouldnt use this as a current account, just use it to get the £5's.

jamesd

karatedragon wrote: »

I am concered that someone can actually afford to do that on national assistance and benefits. Fund multiple bank accounts with £1000 a month plus to gain interest/bonuses to boost their income.

It doesn't take £1,000 a month being added to the balances to do it, though. Just the same £50 or £100 making lots of transfers.

karatedragon

Tiff I think I kind of get the idea on this. So do you have several of these Halifax accounts? Are you allowed to do that? I am single. So as a single person I can have more than one Halifax Reward account.

Now let me get this right... You then chain the together with standing orders for £1000. The £1000 passes by or through each account triggering or generating the £5?? This is even though the accounts are not used for anything like paying bills and so on?
Then the £1000 that passes through the accounts returns back to the original sending account?

Do the Halifax not realise they are being fleeced like this?

rb10

karatedragon wrote: »

Do the Halifax not realise they are being fleeced like this?

It is a small number of people who use the accounts in this way.

The majority of people switch all their payments and salary over from their old bank account to the new Reward account. This is obviously simpler, as then they only have to manage one account, not two, and the salary going in takes care of the £1000 funding requirement.

So I expect that Halifax are happy to have a small number of people playing the system if it means that they also have a very large number of people switching accounts to them.

blueberrypie

karatedragon wrote: »

Tiff I think I kind of get the idea on this. So do you have several of these Halifax accounts? Are you allowed to do that? I am single. So as a single person I can have more than one Halifax Reward account.

Now let me get this right... You then chain the together with standing orders for £1000. The £1000 passes by or through each account triggering or generating the £5?? This is even though the accounts are not used for anything like paying bills and so on?
Then the £1000 that passes through the accounts returns back to the original sending account?

Do the Halifax not realise they are being fleeced like this?

Probably, and quite possibly at some point they will decide that those of us with more than one account should close some. Until then, though... ;-)

When the Reward account was introduced, you could have three per person. That changed in late November, so now you can have one individual and one in joint names. As a single person, you probably don't have anyone you want to become financially linked to, so you'd be limited to one account. Still £60/year for doing almost nothing though. As long as your deposits over the month total £1k, you get the £5 at the beginning of the next month - no need to leave the money there more than momentarily. No need for DDs etc either - although to be honest Halifax are pretty good about Faster Payments etc so you might decide to use it as an active account.

The A&L Premier Direct is now offering 5%, I believe, for one year, on balances up to £2500. Because it's interest, you have to leave the money in the account to maximise the benefit, as well as deposit £500/month in (though you can withdraw it again immediately). Ditto with the LTSB Vantage accounts. So if you've savings, you could take advantage of those too.

karatedragon

I might give the Halifax a go with the £5 a month.

My savings are in premium Bonds and I have got more off those than I would have doing any of this Halifax transfer money stuff or used the Alliance and Leicester interest rate.