Get your own back - Charge your bank over one googol % interest

brightonman123

is this fiver on top / instead of any measly interest..?

Hominu

If we want to be picky, your all wrong.

You get £6.25 per month, or £75 per year.

You'll only get £5 if your paying basic rate tax, or £3.75 if you pay higher rate tax.

brightonman123 wrote: »

is this fiver on top / instead of any measly interest..?

Instead of, but if you keep approximately 1K in your current account, it's basically 7.5% interest, which is better than any other current account out there.

Mikeyorks

And if you keep £10 average in the account ..... then it's 7500%.

But - as has been pointed out many times over the last 3 years - no matter how you cut it ....... it's still just £75pa. But you do get to keep the other £990 average in a 3% account somewhere else. All of which helps.

Suspect the OP is using up his average 2 posts per annum before the year is out?

Milarky

nathand wrote: »

Nope, you need £1000. Even though you get that straight back, you still need 1000 to 'invest' every month.

People just don't get this - it's about compound interest taken to colourful lengths.

A googol (10^100) in % is x 10^98. ln 10 is 2.3 something and 98 times that is about 225. So a googol of interest is about e^225.

That's the same as e^(0.618)*365

So, daily we require a multiplier of about e^0.618. [pretty close to 'phi', conicidentally]

Now once through the loop is 'x 1.005' (£1000 in £1005 returned) so the ratio of indexes needed to get that is about

[ln(1.0050]/(0.618) 0.00807 of one day... or 11 mins 36 secs

If it takes just that long to pay and return the money then you are earning at annual rate of 1 googol in interest.

The caveats make this impossible to achieve, however. First the £5 is not paid until the end of a month - the fantasy requires it be paid immediately 'with' the recycled £1K. Secondly, even if Halifax did do this the fivers would need constant corralling into newly opened accounts, 200 lots at a time, just to keep the process going. Since £5 is not paid For the first time through, that step alone more take more than a day.

[Actually this makes for an interesting modelling exercise..]

noh

nathand wrote: »

Nope, you need £1000. Even though you get that straight back, you still need 1000 to 'invest' every month.

No you don't need £1000.
It could be £250 moved four times or £100 moved ten times.
It could even be Halifaxs own money ie an overdraft that costs nothing as long as the account is not in overdraft by the end of the day.
The later is how I fund my three accounts.

Biggles

As already mentioned, OP, this isn't news, you obviously haven't read the forum. It was news two or three years ago. Newbies should do their research.

But you can't move it in and out in 10 minutes. It appears in your Halifax Reward account instantly but isn't 'available funds' to move between your accounts (assuming, like most of us, you have two or three) or to return to your main current account for an hour or two.

But, as the money isn't out of my main account overnight, I look on it more as an hourly rate than an APR. £15 each month for, maybe, 15 minutes of my time = £60 per hour.

I'll settle for that.

Hominu

Mikeyorks wrote: »

But you do get to keep the other £990 average in a 3% account somewhere else. All of which helps.

I keep mine in a Halifax 2.8% account, not the best, but its easy instant access, and I like to give a little back

Just saving up until I've got 5K in there, then I can join the savers prize draw

(Waits for the umpteen posts of how much APR a £1000 gift is on an average balance of £5000)

Mikeyorks

noh wrote: »

....or £100 moved ten times.
.

Too excessive? There was a thread on here a few months ago where Halifax closed accounts where someone was 'laundering' that level through a couple of family accounts.

Mikeyorks

Biggles wrote: »

But you can't move it in and out in 10 minutes. It appears in your Halifax Reward account instantly but isn't 'available funds' to move between your accounts (assuming, like most of us, you have two or three) or to return to your main current account for an hour or two.

Curious. I fund the OHs housekeeping account with £1k. And then pinch the excess back within seconds. Leave it there above 5 mins and she would claim it under squatters rights!

So I presume you fund from externally? But I still thought that would show as immediately available.

1Amigo

Mikeyorks wrote: »

Curious. I fund the OHs housekeeping account with £1k. And then pinch the excess back within seconds. Leave it there above 5 mins and she would claim it under squatters rights!

So I presume you fund from externally? But I still thought that would show as immediately available.

I fund it internally likewise and the money is instantly available for withdrawal.